Loading...
HomeMy WebLinkAbout4/20/2006 AGENDA BACKUPCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 20, 2006 No.: 3.a. CONSENT CALENDAR Type of Action: ADOPT RESOLUTION subject: ADOPT A RESOLUTION ACCEPTING A GRANT OF EASEMENT FROM JOSEPH C. CONDON FOR THE WALNUT CREEK SEWER RENOVATION — PHASE 3, DISTRICT PROJECT NO. 5929 Submitted By: Initiating Dept./Div.: Rick Hernandez Engineering /Environmental Services Senior Engineering Assistant REVIEWED AND RECOMMENDED FOR BOARD ACTION: R. Hemand M. enny C. Swanson A. Far II C arles . Ba General Manag r ISSUE: Easements must be accepted by the Board of Directors by resolution. RECOMMENDATION: Adopt a resolution to accept a Grant of Easement. FINANCIAL IMPACTS: A total of $8,100 was paid for the easement. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The subject easement was acquired to accommodate a new sewer through backyard easements behind properties on Stewart Avenue as part of the Walnut Creek Sewer Renovation — Phase 3 Project (map attached). Although the sewer construction has been completed, the easement was not acquired until after construction in order to accommodate changes in alignment during construction and to gather more accurate survey information. RECOMMENDED BOARD ACTION: Adopt a resolution accepting a Grant of Easement from Joseph C. Condon, and authorize staff to record the Grant of Easement with the Contra Costa County Recorder. Page 1 of 2 WENVRSEMPosition Papers \Hernandez R\2006 \5929 Accept GOE Condon 4- 20- 06.doc zA Ll/V�V � G� LJ O A aUV T l_JUVa � U b a 9 0 2899,67 S 55° 15'22" E 2��0 E 140.92' 5 P.O .B. 5' 10/ R- 250.00' Detta-56° 17'24" L- 23.08' LOT 201 LOF 201 Jr 1 S 60° 32'47" E 60.49' IN condon Recorder Series No. 98-0257416 -00 LOS' 202 .W40 LOCATION MAP N.T.S. S 65° 10'58" E 63.63' S T E W A R T A V E PROJECT AREA L0T 1011 d N d J 0 20 40 d E u FEET a Y Central Contra Costa Drawing No. Sanitary District WALNUT CREEK 3 ' RENOVATIONS — 5929 MAP V 2136 STEWART AVE Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: APRIL 20, 2006 No.: 3.b. CONSENT CALENDAR Type of Action: SET DATE FOR PUBLIC HEARING subject: ESTABLISH MAY 18, 2006, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND DISTRICT CODE SECTION 6.20.300, SCHEDULE OF REIMBURSEMENT FEES FOR DISTRICT PROJECT NO. 5738 (SOUTH AVENUE ALAMO) Submitted By: Initiating Dept✓Div.: Michael J. Penny, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: � u M. Penny J. Miyamoto -Mills C. Swanson A. Farrell harles General Mam ISSUE: When a Reimbursement Fee is proposed for properties that could directly connect to a "standard facility" installed by private individuals, the District Code requires a public hearing be held prior to the Board of Directors' adoption of the fee. RECOMMENDATION: Establish the Board's regularly scheduled meeting on May 18, 2006, as the date for a public hearing to receive comments on proposed Reimbursement Fees for properties which could connect to the Standard Facilities identified as Job 5738 (South Avenue, Alamo). FINANCIAL IMPACTS: None related to this action. ALTERNATIVES /CONSIDERATIONS: Not Applicable. BACKGROUND: Private individuals paid for the design and construction of "Standard Facilities" for Job 5738, South Avenue, Alamo (see Attachment 1 for location). After a project is completed by the installer and accepted by the District, the installer contributes the project to the District for public use. Non - installer properties may connect to the contributed public sewers. The District Code provides for a Reimbursement Fee to the installer, so the installer may recover a portion of the cost for the contributed facility. The proposed Reimbursement Fees would be collected from property owners when they connect to the sewer system. The collected fees would then be disbursed to the installers of the projects. The District Code requires that a notice of public hearing be mailed to owners of properties to which the fee could be applicable at least ten days in advance of the date set for the hearing. The notice is to include a general description of the reimbursement N: \ENVRSEC \Position Papers \Penny\2006 \5738 Position Paper Set Date for Public Hearing 4- 20- 06.doc Page 1 of 3 POSITION PAPER Board Meeting Date: April 20, 2006 subject ESTABLISH MAY 18, 2006, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND DISTRICT CODE SECTION 6.20.300, SCHEDULE OF REIMBURSEMENT FEES FOR DISTRICT PROJECT NO. 5738 (SOUTH AVENUE ALAMO) fee program, a description of the facility which gives rise to the proposed fee, and the amount of the proposed fee. RECOMMENDED BOARD ACTION: Establish the Board's regularly scheduled meeting on May 18, 2006, as the date for a public hearing to receive comments on proposed Reimbursement Fees for properties which could connect to the Standard Facilities identified as Job 5738 (South Avenue, Alamo). NAENVRSEMPosition Papers \Penny\2006 \5738 Position Paper Set Date for Public Hearing 4- 20- 06.doc Paqe 2 of 3 3 PROJECT AREA L STONE TS. vk� WINE, Central Contra Costa Drawing No. Sanitary District REIMBURSEMENT PROGRAM SOUTH AVENUE,ALAMO (DP 5738) 1 Page 3 of 3 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: Type of Action Subject: April 20, 2006 No.: 3.c. CONSENT CALENDAR AUTHORIZE PURCHASE AUTHORIZE THE PURCHASE OF A PURGE AND TRAP CONCENTRATOR Submitted By: Bhupinder Dhaliwal Initiating Dept. /Div.: Operations /Plant Operations Laboratory Superintendent REVIEWED AND RECOMMENDED FOR BOARD ACTION: _T B. Dhaliwal J. K Ily General ISSUE: Board of Directors' authorization is required for equipment purchase if the cost exceeds $5,000. RECOMMENDATION: Authorize the purchase of a purge and trap concentrator. FINANCIAL IMPACTS: The estimated total cost is $16,000. ALTERNATIVES /CONSIDERATIONS: Do not purchase the equipment; send the samples to a contract laboratory. BACKGROUND: The National Pollutant Discharge Elimination System ( NPDES) permit requires the District to monitor several volatile organics using Environmental Protection Agency Method 624. This method uses a gas chromatograph /mass spectrometer (GC /MS) and a purge and trap concentrator. The purge and trap concentrator used by the District was manufactured by Tekmar and was purchased in 1994. The concentrator has been repaired at least three times in the past two years at a cost of $4,000. It currently does not meet the NPDES requirements and needs additional repairs. The cost of repairs is estimated to be $5,000. However, the manufacturer informed us that the factory discontinued support (parts) for this model effective March 2006. Because of the upcoming discontinuation of service support and a substantial improvement in the purge and trap technology during the past ten years, the manufacturer recommends the replacement of this instrument. The new instrument will cost approximately $16,000. If we decide to send all the samples to a contract laboratory, the cost will be approximately $11,000 per year. RECOMMENDED BOARD ACTION: Authorize the purchase of a purge and trap concentrator at cost of $16,000. N: \POSUP \Correspondence \Position Papers\2006 \Purge & Trap Concentrator. doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 20, 2006 No.: 3.d. CONSENT CALENDAR Type of Action: HUMAN RESOURCES Subject: AUTHORIZE EXTENSION OF MEDICAL LEAVE OF ABSENCE WITHOUT PAY FOR MARK LAFFERTY, MAINTENANCE TECHNICIAN III, MECHANICAL, THROUGH SEPTEMBER 8, 2006 Submitted By: James M. Kelly Initiating Dept. /Div.: Operations/ Director of Operations Plant Operations REVIEWED AND RECOMMENDED FOR BOARD ACTION: J. Kelly C. Freitas a*hMianer Gen ISSUE: Board of Directors' authorization is required for a medical leave of absence without pay in excess of 30 days. RECOMMENDATION: Authorize extension of medical leave of absence without pay for Mark Lafferty, Maintenance Technician III, Mechanical. FINANCIAL IMPACTS: Minimal ALTERNATIVES /CONSIDERATIONS: Deny extension of medical leave of absence without pay. BACKGROUND: Mark Lafferty, Maintenance Technician III, Mechanical, has been off of work since March 9, 2005, due to a medical condition. At past Board meetings, the Board approved Mr. Lafferty to be on medical leave of absence without pay until April 20, 2006. We request extending Mr. Lafferty's medical leave of absence without pay until September 8, 2006. Mr. Lafferty's status will be reviewed at that time, and further Board action will be requested if appropriate. RECOMMENDED BOARD ACTION: Authorize extension of medical leave of absence without pay for Mark Lafferty, Maintenance Technician III, Mechanical, through September 8, 2006. N: \POSUP \Correspondence \Position Papers\2006 \Lafferty -Ext of Leave of Absence- 9- 8- 06.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 20, 2006 No.: 3.e. CONSENT CALENDAR Type of Action: HUMAN RESOURCES Subject: AUTHORIZE EXTENSION OF MEDICAL LEAVE OF ABSENCE WITHOUT PAY FOR HARRELL DEAN McNEELY, MECHANICAL SUPERVISOR, THROUGH JUNE 20, 2006 Submitted ay: James M. Kelly Initiating Dept./Div.: Operations/ Director of Operations Plant Operations REVIEWED AND RECOMMENDED FOR BOARD ACTION: J. Kelly C. rreitas arles . Batt , General Manager ISSUE: Board of Directors' authorization is required for a medical leave of absence without pay in excess of 30 days. RECOMMENDATION: Authorize extension of medical leave of absence without pay for Harrell Dean McNeely, Mechanical Supervisor. FINANCIAL IMPACTS: Minimal ALTERNATIVES /CONSIDERATIONS: Deny extension of medical leave of absence without pay. BACKGROUND: Harrell Dean McNeely, Mechanical Supervisor in the Mechanical Maintenance Shop, has been off of work since August 22, 2005, due to a medical condition. Mr. McNeely applied for, was granted, and used 12 weeks of Family Medical Leave. At past Board meetings, the Board approved Mr. McNeely to be on medical leave of absence without pay until April 20, 2006. We request extending Mr. McNeely's medical leave of absence without pay until June 20, 2006. Mr. McNeely's status will be reviewed at that time, and further Board action will be requested if appropriate. RECOMMENDED BOARD ACTION: Authorize extension of medical leave of absence without pay for Harrell Dean McNeely, Mechanical Supervisor, through June 20, 2006. N: \POSUP \Correspondence \Position Papers\2006 \McNeely -Ext of Leave of Absence- 6- 20- 06.doc PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND DISTRICT CODE SECTION 6.08.020 "ANNEXATION CHARGES" AND CHAPTER 6.30 "SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND CHARGES" SUGGESTED AGENDA April 20, 2006 I. Request Staff Report II. Hearing A. Open Hearing. B. Receive comments, if any. C. Close Hearing. III. Discussion IV. Recommended Actions: A. Adopt the proposed Ordinance to amend District Code Section 6.08.020 "Annexation Charges" and Chapter 6.30 "Schedule of Environmental and Development - Related Rates and Charges." C: \DOCUME- 1 \eboehme \LOCALS- 1 \Temp\Agenda for R &C Hearing 04- 20- 2006.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 20, 2006 No.: 4.a. HEARINGS Type of Action: CONDUCT A PUBLIC HEARING; ADOPT ORDINANCE Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON, AND CONSIDER ADOPTING A PROPOSED ORDINANCE TO AMEND DISTRICT CODE CHAPTERS 6.08 "ANNEXATION CHARGES" AND 6.30 "SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND CHARGES" Submitted By: Kurt Darner Supervising Engineering Assistant Initiating Dept)Div.: Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: �J Y� r �)Y 'v K. D er J. Miyamoto Mills kt. Swanson A. Farre I harles . Batt General Manag r ISSUE: The District Code requires that a public hearing be held prior to the Board of Director's adoption of an ordinance to amend Chapters 6.08 "Annexation Charges" and 6.30 "Schedule of Environmental and Development - Related Rates and Charges." RECOMMENDATION: Conduct a public hearing to receive comments regarding a proposed ordinance to amend District Code Chapters 6.08 "Annexation Charges" and 6.30 "Schedule of Environmental and Development - Related Rates and Charges." Adopt the ordinance. FINANCIAL IMPACTS: The proposed rates and charges are designed to recover 100 percent of the District's direct and indirect labor costs, other operating costs, and administrative overhead costs incurred in providing environmental and development - related services. If adopted, the additional revenue generated by these increases in 2006 -07 would total about $50,000 to $100,000. This is in addition to the approximately $1.5 million per year currently generated through application of these rates and charges. BACKGROUND: Chapter 6.30 of the District Code includes a schedule of rates and charges for environmental and development - related services provided to contractors, developers, septic and grease waste haulers, and permitted industrial users. These services include permit counter assistance, plan review, inspection of construction for laterals and main line extensions, addition of new sewers, parcels, and permit information to District maps, administration of Source Control permits and inspections, and septage and grease hauler permitting, sampling, and treatment. These rates and charges were last reviewed in 2005. District staff annually reviews the rates and charges to assess whether changes are appropriate. This year, the District has re- evaluated the rates and charges for the categories of Development Plan Review, N: \ENVRSEC \Position Papers \Darner\2006 Rates & Charges Public Hearing Pos Paper 4- 20- 06.doc Page 1 Of 9 POSITION PAPER Board Meeting Date: April 20, 2006 subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON, AND CONSIDER ADOPTING A PROPOSED ORDINANCE TO AMEND DISTRICT CODE CHAPTERS 6.08 "ANNEXATION CHARGES" AND 6.30 "SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND CHARGES" Construction Inspection, Collection System Operations Services, Right -of -Way, and Miscellaneous. No changes are proposed for the categories of Industrial Permit Fees and Septage / Grease Disposal, except for the elimination of the fee for Class III Permitted Users and the Permit Application fee. The State of California mandates that revenues from these sources not exceed the cost of providing services. Following it's review, District staff recommends that several rates and charges be increased, a few be decreased or remain unchanged, some new charges be added, and a few others eliminated. Table 1 presents a comparison of the current and proposed rates and charges with indications of which are new and which staff proposes to delete. Factors contributing to the proposed changes include: 1) adjustment for increased salaries, benefits, and overhead; and 2) a re- evaluation of the actual level of effort for some of the tasks as currently performed. Some rates and charges were reduced due to the level of effort re- evaluation and others were added or deleted to simplify administration. A proposed increase in "Annexation Fees" is also shown in Table 1. This proposed (112 %) increase is to properly account for the cost of increased LAFCO and State annexation filing requirements and fees. Notices of the public hearing were posted and published in the Contra Costa Times. In addition, the proposed schedule of rates and charges was distributed to representatives of the Home Builders Association of Northern California, the Engineering and Utilities Contractors' Association, the Associated Building Contractors Golden Gate Chapter, current permit applicants, and others who have requested notice of fee increase proposals. This effort to invite public comment was pursued to encourage affected customers to provide input during the rate setting process. Comments submitted by the public during the review period will be presented to the Board of Directors at the public hearing. RECOMMENDATION: Conduct a public hearing to receive comments regarding a proposed ordinance to amend District Code Chapters 6.08 "Annexation Fees" and 6.30 "Schedule of Environmental and Development - Related Rates and Charges." Adopt the ordinance. NAENVRSEC \Position Papers \Darner\2006 Rates & Charges Public Hearing Pos Paper 4- 20- 06.doc Page 2 Of 9 ORDINANCE NO. AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AMENDING DISTRICT CODE SECTION 6.08.020 "ANNEXATION CHARGE" AND CHAPTER 6.30 SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND CHARGES WHEREAS, the Board of Directors of the Central Contra Costa Sanitary District ( CCCSD) finds that CCCSD incurs substantial costs to provide various environmental and development - related services, such as, but not limited to, administration and processing of annexations, customer assistance at the permit counter, plan review and inspection for sewer line installation, alteration, replacement and repair, the inclusion of new information on District maps, administration and permit inspection related to the Source Control Program, permitting of septage and grease haulers, and treatment of grease and septage at the treatment plant; and WHEREAS, it is necessary to charge customers and other users of CCCSD services to recover the reasonable cost of providing said services; and WHEREAS, CCCSD staff has comprehensively analyzed the actual cost of providing the various environmental and development - related services listed above based on direct costs, staff costs and overhead for time and effort incurred to provide listed services; and WHEREAS, the Board finds that the Schedule of Environmental and Development - Related Rates and Charges, as reflected in Exhibit "B" to this Ordinance, reasonably represents the actual costs to provide the services delineated in said Schedule of Rates and Charges; and WHEREAS, the CCCSD Board of Directors finds that this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15273 (a)(1) and (3) of the State CEQA Guidelines, in that the fees are being charged merely to reimburse CCCSD for staff costs and expenses. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does hereby ordain as follows: Section 1. Section 6.08.020 "Annexation Charge" of the CCCSD Code is hereby amended to read as set forth in full in Exhibit "A" to this Ordinance, which exhibit is hereby incorporated in full herein by this reference. Section 2. Chapter 6.30 "Schedule of Environmental and Development - Related Rates and Charges" of the CCCSD Code is hereby amended to read as set forth in full in Exhibit Page 3 of 9 "B" to this Ordinance, which exhibit is hereby incorporated in full herein by this reference. As of the effective date of this Ordinance, the fees, rates and charges for each environmental and development - related service shall be as set forth in said amended Chapter 6.30. Said amended Schedule of Environmental and Development - Related Rates and Charges shall remain in effect until amended by Ordinance. Section 3. This Ordinance shall be a general regulation of the District and shall be published in the Contra Costa Times, a newspaper of general circulation, published and circulated within the Central Contra Costa Sanitary District and shall be effective as of July 1, 2006. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 20th day of April 2006, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to Form: Kenton L. Alm District Counsel Page 4 of 9 6.08.20 Annexation charges. A. Large Annexations and reorganizations. When a Petition for Annexation is processed as a reorganization (two or more changes of organization initiated in a single proposal) or where the Petition for Annexation is for a property proposed to be developed into ten (10) or more subdivision lots, the property owner shall be charged an Annexation Charge equal to the District's actual administrative and related costs to process the annexation, but in no case less than $2,400. The $2,400 minimum annexation charge shall be due and payable upon the property owner's submittal of the Petition for Annexation to the District. Any additional costs that exceed the $2,400 minimum charge shall be due and payable within 45 days of the date of the District's invoice mailed to the property owner by first -class mail, which billing may be on a monthly or less frequent basis at the District's discretion. B. Other Annexations. The Board of Directors shall from time to time, after conducting a public hearing, establish by eFdonaRGe a sehedule a annexation charges for recovery of the District's costs associated with annexation of real property situated to the District other than those processed as large annexations or reorganizations subject to the charges required under Paragraph 6.08.020 A of this Code, incorporating said annexation charges by ordinance into Chapter 6.30 of this Code, the Schedule of Environmental and Development- Related Rates and Charges. Upon establishment, the sGhedule ef annexatieR GhaFges shall be Published a DiStFirSt'S a, shall be ma*ntamned in the DiStFiGt GAGes and made available We the publiG upon request. Page 5 of 9 TABLE 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES (2006) Fee Category Current Fee I Proposed Fee %, Change (A) DEVELOPMENT AND PLAN REVIEW Review of new sewer plans and related documents; review of plans for and processing of residential and commercial permit applications, installer reimbursement of sewer construction costs from subsequent connectors; identification of right -of -way conflicts, • and interest rates for District programs. (A -1) Development Review: Mainline Plan Review (2 preliminary + 1 final plan reviews): Base Fee $385 $420 9.09% Per Foot Charge (in street) $3.21 $3.24 0.81% Per Foot Charge (in undeveloped land) $2.57 $2.59 0.73% Each additional plan review: Base Fee $128 $140 9.38% Per Foot Charge $1.07 $1.08 0.81% Special Cut Sheet Review $163 $177 8.59% Manhole only design & plan review $593 $622 4.89% Right of Way document review - IOD / Sub Map (each): $470 $513 9.15% Right of Way document review - Appurtenance (initial): $439 $477 8.66% Appurtenance (each additional) $227 $246 8.37% Commercial development plan check (new connections) $153 $166 8.50% (A -2) Application Fees Basic Application (side sewer work, easement staking) $83 $79 -4.82% Existing parcel - new sewer service $109 $108 -0.92% New parcel - new sewer service $192 $173 -9.90% Commercial Application $170 $177 4.12% Capacity Use Program $146 $158 8.22% (A -3) Reimbursement Accounts: Set -up fee $665 $749 12.63% Transaction fee $148 $161 8.78% (A-4) Commercial Business Plan Review (added square footage, food service) Added Square Footage, Food Service $100 $109 (NEW) Source Control Review N/A $169 (A -5) Private pumping system plan check Pump with Outside Force Main $751 $774 3.06% Pump Only $263 $223 -15.21% Annexation Fee $240 $509 112.07% E(NEW) (A-7) Special Approvals $168 $183 8.93% 2006 Rates &Charges Comparison Page 6 of 9 TABLE 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES (2006) Fee Category Current Fee I Proposed Fee % Change (B) CONSTRUCTION INSPECTION Inspection of new sewer main construction and new connections and other sewer work on private property (includes TV inspection when approprate). (B -1) Mainline Inspection: Base Fee $575 $601 4.52 °k Per Foot Charge (in street) $6.96 $7.55 8.53 °k Per Foot Charge (in undeveloped land) $5.19 $5.04 -2.97% (B -2) Inspections by type: Side Sewer Installation / Repair: 1 -100 feet $115 DELETED 101 - 200 feet $230 DELETED 201 - 300 feet $345 DELETED 301 feet and over $460 DELETED (NEW) Side Sewer Installation / Repair per 100 feet: N/A $124 Single Inspection Charge (e.g. sewer connection; encroachment verification; side sewer cap on property; tap and lateral (new or replacement); air test; reinspection) $115 $124 7.83% Manhole tap; lateral abandonment at main; pipe bursting $230 $248 7.83% Manhole Alteration $345 $372 7.83% New Manhole; New Rodding Inlet; Outside Pump Installation $460 $496 7.83% Grease / Sand / Oil Interceptor / Trap; Trash Enclosure $690 $744 7.83% (B -3) Overtime inspection: First Hour $80 $83 3.75% Every hour thereafter $54 $54 000% Weekend/Holiday (New Year's Day, Martin Luther King, President's Day, Memorial Day, July 4th, Labor Day, Veteran's Day, Thanksgiving, Christmas) - 4 hr. minimum $242 $245 1.24% (134) Inspection of non - permitted work (+ avoided charge) $345 $372 7.83% 2006 Rates & Charges Comparison Page 7 of 9 TABLE 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES (2006) Fee Category Current Fee I Proposed Fee %Change (C) COLLECTION SYSTEM SERVICES TV inspection of sewers conducted separate from a construction inspection activity, verification of sewer location and sewer service connection. (C -1) TV Inspection: Weekday, hourly rate $166 $169 1.81% Minimum Charge (2 hr min) $332 $338 1.81% Overtime - First Hour $126 $121 -3.97% Overtime - Each Additional Hour $106 $99 -6.60% Overtime - Weekend / Holiday (4 hr min) $445 $418 -6.07% (C -2) (C-3) (C-4) Dye test Collection system repair Cancelled TV Inspection without prior notice $287 Actual Expense $281 $288 Actual Expense $293 0.35% 4.27% (C -5) Sewer locating and marking $227 $246 8.37% (D) RIGHT -OF -WAY Establishing right -of -way agreements and resolving conflicts. (D -1) Process quitclaim deeds $786 $804 2.29% (D -2) Process Real Property Agreement, License, or Easement Base Fee (1 hour) $314 REVISED (NEW) Base Fee (2 hours) $661 Each Additional Hour $89 $103 15.82% (D -3) Right -of -way Research / Encroachment Resolution Fee Actual Expense Actual Expense (NEW) Right of Entry Permit Fee N/A $90 (E) MISCELLANEOUS District services provided for private sewerprojects. (E -1) Engineering - private sewer projects Actual Expense Actual Expense (E -2) Soil evaluation - private sewer projects Actual Expense Actual Expense (E -3) Surveying Actual Expense Actual Expense (E-4) Minimum annual interest rate for CADs and Capacity Use Program 6.00% 6.00% 0.00% (NEW) Document / Plan Copying Fees 81/2" x l l "; 81/2"x14"; 11" x 17" (per sheet) $0.15 $0.15 0.00% 24" x 36" Plan (per sheet) $2.70— $300 11.11% CCCSD Standard Specifications $20.00 $20.00 0.00% 2006 Rates & Charges Comparison Page 8 of 9 TABLE 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES (2006) Fee Category Current Fee I Proposed Fee % Change (F) INDUSTRIAL PERMIT FEES Permiting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment processes. (F -1) Class I Fees Base permit fee of $3,256 + cost of District's lab analysis Base permit fee of $3,256 + cost of District's lab analysis no change F -2 ( ) Class 11 Fees () Base permit fee of $3,256 + cost of District's lab analysis Base permit fee of $3,256 + cost of District's lab analysis no change (F -3) Class III Fees (`) Base fee of $351 $0 (F-4) Industrial user permit application fee (`) Base fee of $225 $0 (F -5) Special discharge permit application fee (`) No on -site inspection $65 each $65 each no change On -site inspection ( ") Base fee of $345 Base fee of $345 no change (G) SEPTAGE DISPOSAL Sampling and disposal of septic waste and grease. (G -1) Annual permit fee $1,650 $1,650 no change (G -2) Residential septic/toilet waste < 2,000 gallons $18 + $0.14/gal $18 + $0.14/gal no change > 2,000 gallons $58 + $0.14/gal $58 + $0.14 /gal no change (G-3) Restaurant grease waste ( " ") < 2,000 gallons $18 + $0.02/gal $18 + $0.02/gal no change > 2,000 gallons $58 + $0.02/ al $58 + $0.02/ al no change (`) Additional charges to be billed separately if staff time incurred is above that included in the base fee. ( ") Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength characteristics are provided. 2006 Rates & Charges Comparison Page 9 Of 9 r Central Contra Costa Sanitary District Capacity Fees, and Environmental & Development - Related Rates & Charges Public Hearings April 20, 2006 Connection Fees • What are Connection Fees? — Annexation Charges — Permit and Inspection fees — Capacity Fees • Gravity Zone • Pumped Zone — Portion of 1 st year's Sewer Service Charge — Reimbursement Fees `�T / — 0( d- ` Items an a ae 1 Annexation Charges • Current $240 /parcel charge set in 1988. • Charge is intended to recover costs of processing including District staff effort, as well as LAFCO and State Board of Equalization (SBE) filing fees. • LAFCO & SBE fees have increased and more staff effort is being expended to comply with their more complex application filing requirements. • Proposed charge: $509 /parcel ( +112 %). Environmental Services and Development - Related Rates & Charges • Recommended Rates and Charges reflect: - Revisions to recover actual costs of providing services. • Many increased, some decreased or unchanged, addition of a few new, and elimination of a few Rates & Charges. — Changes range from a reduction of 15.2% to an increase of 15.8% 2 r Capacitv Fees Capacity Fees are currently 25 -30% of long- term Sewer Construction revenue. • Annual revenue is somewhat unpredictable since it is dependent on rate of development. Capacitv Fees • SB 1760 redefined "capacity charge," as either: — Charge to "buy -in" to existing assets; or — Charge for "future facilities" to be constructed that will benefit customer or property. • Most CCCSD assets needed to serve future customers exist, so the "buy -in" method is appropriate. M Current Capacity Fees • Gravity Service • Pumped Service: $4,150 / RUE $5,481 / RUE Proposed Capacity Fees • Gravity Service: • Pumped Service: $4,263 / RUE $5,667 / RUE 4 w L Public Outreach • Letters — Home Builders Association, Associated General Contractors, Engineering & Underground Contractors Association, American Institute of Architects — 350 Applicants, Developers, Engineers, Business Owners and Contractors • Public Meetings — April 11, 2006 — April 12, 2006 Schedule • Set Public Hearing Date - - - - -- March 16, 2006 • Outreach ----- - - - - -- March 17 to April 20, 2006 • Public Hearing --------------- - - - - -- April 20, 2006 • Fees & Charges effective- - - - - -- -- July 1, 2006 5 Findings General • The District incurs substantial costs to provide environmental and development - related services and have made a substantial investment in assets that will benefit new users. Findings General • There is a strong and reasonable relationship between the actual added burden /District costs and the proposed fees, rates and charges. • —The - proposed fees, rates and charges are exempt from the California Environmental Quality Act (CEQA). 2 Findings Capacity Fees • New users generate an added burden on services and facilities. • To maintain an adequate level of service, maintenance of existing capacity, and construction of new capacity in the future is necessary. • The purpose of the Capacity Fee Program is to equalize the investment in assets between current and new users ensuring that new users pay their fair share for capacity. Findings Capacity Fees • Current fund balances and Capacity Fee revenue will be allocated to: — Life -cycle replacement, renovation, upgrading and improvements to maintain existing capacity. — Addition and expansion of facilities when needed or required to meet legal and regulatory requirements. 7 Findings Capacity Fees • Revenue will be allocated to: — Equitable adjustment of contributions between current, new and contractual users. — Fund the new user's share of "Funds Required" in the: • Sewer Construction Fund • Running Expense Fund • Debt Service Fund • Self Insurance Fund Questions... . PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND DISTRICT CODE SECTION 6.12.090 "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES" SUGGESTED AGENDA April 20, 2006 Request Staff Report Hearing A. Open Hearing. B. Receive comments, if any. C. Close Hearing. III. Discussion IV. Recommended Actions: A. Adopt proposed Ordinance to amend District Code Section 6.12.090 "Schedule of Capacity Fees, Rates and Charges." C: \DOCUME- 1 \eboehme \LOCALS- 1 \Temp\Agenda for Cap Fee Hearing 04- 20- 2006.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 20, 2006 NO.: 4.b. HEARINGS Type of Action: CONDUCT A PUBLIC HEARING; ADOPT ORDINANCE Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AN ORDINANCE TO AMEND DISTRICT CODE SECTION 6.12.090 "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES "; ADOPT THE ORDINANCE Submitted By: Jarred Miyamoto -Mills Initiating Dept. /Div.: Engineering/ Principal Engineer Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: )r -P� �A — — W�r — J. Miyamoto -Mills C. Swanson A. Farret 4K. Alm General ISSUE: The District Code requires that a public hearing be held prior to the Board of Director's adoption of an ordinance to amend District Code Section 6.12.090 "Schedule of Capacity Fees, Rates and Charges ". RECOMMENDATION: Conduct a public hearing to receive comments regarding a proposed ordinance to amend District Code Section 6.12.090 "Schedule of Capacity Fees, Rates and Charges ". Adopt the proposed ordinance. FINANCIAL IMPACTS: Staff estimates that the recommended fees would generate about $300,000 per year in additional Capacity Fee revenue. BACKGROUND: In September 1998, the state enacted SB1760 that requires sewer connection fees to be based on one of two methods: 1) a buy -in to existing assets or 2) the cost of future facilities expansion. This bill was enthusiastically endorsed and supported by homebuilder's associations statewide. The last review of the District's Capacity Fees was completed in 2005. Since 2001, the method for determination of the fee has been a "buy -in -to -all assets" approach. This was done to provide a rational, practical, equitable, and defensible method to calculate the financial burden of new connections. The buy -in -to -all- assets approach is preferred primarily due to the "facilities- mature" status of the District. In this context, facilities- mature means that the value of existing assets (about $1.2 billion) is many times the value of future facilities expansion needed to accommodate future customers. Stated differently, most of the facilities needed to serve new customers have already been built and paid for by current customers. Page 1 of 11 N: \ENVRSEC \Position Papers \Miyamoto -Mills \Capacity Fees, Rates\2005 Conduct Public Hearing Pos Paper Sched Capacity Fees 4- 20- 06.doc POSITION PAPER Board Meeting Date: April 20, 2006 subject. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AN ORDINANCE TO AMEND DISTRICT CODE SECTION 6.12.090 "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES "; ADOPT THE ORDINANCE As a consequence, most of the work envisioned in the District's Capital Improvement Plan is for renovation, replacement or upgrading of facilities to meet the needs of both current and prospective customers. Charging a Capacity Fee based on a buy- in- to -all- assets at the time of connection to the public sewer system equalizes the unit investment of each customer as they move from being a "future" to being a "current" customer. The proposed Capacity Fees are as follows: Fee Category Current (2005) Proposed % change Gravity Zone Fee $4,150 per RUE $4,263 per RUE 2.7% Pumping Zone Fee $5,481 per RUE $5,667 per RUE 3.3% RECOMMENDATION: Conduct a public hearing to receive comments regarding a proposed ordinance to amend District Code Section 6.12.090 "Schedule of Capacity Fees, Rates and Charges ". Adopt the proposed ordinance. Page 2 of 11 N: \ENVRSEC \Position Papers \Miyamoto -Mills \Capacity Fees, Rates\2005 Conduct Public Hearing Pos Paper Sched Capacity Fees 4- 20- 06.doc ORDINANCE NO. AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT TO AMEND DISTRICT CODE SECTION 6.12.090 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES WHEREAS, substantial study has been conducted regarding the impacts of planned future development within the District's service area on existing District services and facilities, along with an analysis of new, improved, or expanded District facilities and services required or appropriate to serve new users and current users who change the use of their connected buildings and facilities, and said studies have set forth the relationship between the added burden imposed by such new users and current users who change the use of their connected buildings or facilities, and the need for and estimated cost of District services and facilities occasioned by this added burden; and WHEREAS, these studies were undertaken by District staff and culminated in documents that are part of the public record, to wit: the draft "Fiscal Years 2006 -07 Capital Improvement Budget & 2006 Capital Improvement Plan ", and the "Staff Report on Proposed Capacity Fee Program" dated March 2006; and WHEREAS, it is reasonable and necessary that all users of the District's wastewater and household hazardous waste collection, treatment, recycling, reuse and disposal services and facilities, including those temporary users served under Special Discharge Permits, contribute their appropriate portion of the funding for such District services and facilities; and WHEREAS, public meetings for District staff to informally discuss the proposed Capacity Fee Program with interested customers were held on April 11 and April 12, 2006; and WHEREAS, a properly noticed public hearing regarding the proposed Capacity Fee Program revisions was held on April 20, 2006, and proper notice was also given of the availability of the documents noted above for public inspection and review prior to said public hearing; and WHEREAS, amendment of Chapter 6.12 of the District Code is required to provide the enabling authority for the District to implement the proposed Capacity Fee Program. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does ordain as follows: Page 3 of 11 Section 1. Section 6.12.090 Schedule of Capacity Fees, Rates and Charges of the District Code is hereby amended as set forth in full in Exhibit "A" to this Ordinance, which exhibit is hereby incorporated in full herein by this reference. As of the effective date of this Ordinance, Capacity Fees shall be charged at such rates and for such categories of users as set forth in said amended Section 6.12.090. Section 2. This Ordinance shall be a general regulation of the District and shall be published once in the Contra Costa Times, a newspaper of general circulation within the District, and shall be effective on July 1, 2006. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 20th day of April 2006, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Counsel for the District President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Page 4 of 11 Exhibit "A" 6.12.090 Schedule of capacity fees, rates and charges. The Board of Directors has set the capacity fees, rates, and charges as set forth below pursuant to the provisions of this chapter to ensure adequate funding of all needed upgrades, replacements, renovations, and improvements of existing District wastewater and household hazardous waste collection, treatment, recycling, reuse, and disposal facilities to maintain their capacity, additions to and expansions of the capacity of these facilities in the future when needed or as required to meet legal and regulatory requirements (all of which services and facilities will ultimately be shared by current and future users), for equitable adjustment of capital contributions as between new, current, and contractual users, and prudent reserve requirements of the Running Expense Fund, the Self Insurance Fund, Debt Service Fund, and the Sewer Construction Fund occasioned by the added burden on District services and facilities attributable to new users and current users who change the use of their connected buildings or facilities; and to provide that each new user and each current user who changes the use of his /her connected buildings or facilities pays his /her fair share of the cost of District services and facilities. Page 5 of 11 SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES Capacity fees and charges computed in accordance with this chapter shall be applied to all new connections or added burdens for which fees become due and payable on or after QGtabeF 6, 2003 July 1, 2006. Gravity Capacity Fee: Pumping Capacity Fee: $ -450$ 4, 263 /RUE* $-431$ 1,404/RUE * A residential unit equivalent (RUE) is a measure of sewage volume and strength equivalent to a typical residential household. Gravity Zone Fee (Zone 1) = Gravity Capacity Fee Pumped Zone Fee (Zone 2) = Gravity Capacity Fee + Pumping Capacity Fee Residential Unit Equivalence (RUE) Factors(1) Number of RUE = Unit of Measure Count Multiplied by the RUE factor Eligible for Gravity Pumping Capacity Capacity Capacity Use Fee Fee Charge Use Unit of Measure RUE RUE Program Code User Group 1,2 Factor Factor * =Yes LU Single-family residences Dwelling unit 1.000 1.000 LA Multiple - family Dwelling unit 1.000 1.000 residences, apartments LM Mobile homes Dwelling unit 1.000 1.000 LC Common areas 1,000 sq. ft. 0.200 0.200 AB Auto body/painting 1,000 sq. ft. 0.432 0.467 AD Auto dealerships 1,000 sq. ft. 0.432 0.467 AL Aircraft services 1,000 sq. ft. 0.432 0.467 AR Auto repair/ 1,000 sq. ft. 0.432 0.467 maintenance AS Service stations 1,000 sq. ft. 0.432 0.467 (1) Fees for multi -use buildings shall be determined by considering each use separately. (2) "Unit -of- measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g., dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior dimensions of the structure. Page 6 of 11 SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES -- CONTINUED Residential Unit Equivalence (RUE) Factors(1) Number of RUE = Unit of Measure Count Multiplied by the RUE factor Use Code User Group Unit of Measure 2 Gravity Capacity Fee RUE Factor Pumping Capacity Fee RUE Factor Eligible for Capacity Use Charge Program * =Yes BT Transportation services 1,000 sq. ft. 0.432 0.467 AC Car washes 1,000 sq. ft. 21.127 22.829 AW Car washes, w/recycling 1,000 sq. ft. 3.522 3.805 BB Barbers /beauty salons/ et grooming 1,000 sq. ft. 0.725 0.783 BC Dry cleaners, no laundry 1,000 sq. ft. 0.259 0.279 BR Retail sales 1,000 sq. ft. 0.259 0.279 BE Equipment repair /repair services 1,000 sq. ft. 0.228 0.247 BK Contractors /business services 1,000 sq. ft. 0.228 0.247 BN Nurseries/ lumberyards 1,000 sq. ft. 0.228 0.247 IL Light industrial 1,000 sq. ft. 0.228 0.247 BH Meeting halls 1,000 sq. ft. 0.290 0.313 EA Auditoriums /theaters 1,000 sq. ft. 0.290 0.313 EC Cinemas 1,000 sq. ft. 0.290 0.313 EM Entertainment 1,000 sq. ft. 0.290 0.313 EB Bowling alleys 1,000 sq. ft. 0.311 0.336 BZ Miscellaneous commercial 1,000 sq. ft. 0.510 0.551 EG Golf courses /country clubs 1,000 sq. ft. 1.166 1.391 EH Health clubs/spas 1,000 sq. ft. 1.166 1.391 ET Tennis clubs 1,000 sq. ft. 1.166 1.391 IW Warehouses 1,000 sq. ft. 0.136 0.147 BM I Markets 11,000 sq. ft. 10.556 10.601 BS I Supermarkets 11,000 sq. ft. 10.556 10.601 (1) Fees for multi -use buildings shall be determined by considering each use separately. (2) "Unit -of- measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g., dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior dimensions of the structure. Page 7 of 11 SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES -- CONTINUED Residential Unit Equivalence (RUE) Factors(1) Number of RUE = Unit of Measure Count Multiplied by the RUE factor Use Code User Group Unit of Measure 2 Gravity Capacity Fee RUE Factor Pumping Capacity Fee RUE Factor Eligible for Capacity Use Charge Program * =Yes BX Shopping centers 1,000 sq. ft. 1.057 1.142 OB Business offices 1,000 sq. ft. 0.295 0.319 OF Financial institutions/ banks 1,000 sq. ft. 0.295 0.319 OG Government offices 1,000 sq. ft. 0.295 0.319 OS I Fraternal /service offices 1,000 sq. ft. 0.295 0.319 OM Medical offices 1,000 sq. ft. 0.637 0.688 OV Veterinary clinics 1,000 sq. ft. 0.637 0.688 RB Bakeries retail 1,000 sq. ft. 4.061 2.178 RD Delicatessens 1,000 sq. ft. 1.166 1.294 RN Bars 1,000 sq. ft. 1.166 1.294 RI Ice cream parlors 1,000 sq. ft. 1.166 1.294 RY Yogurt shops 1,000 sq. ft. 1.166 1.294 RS Restaurants dine -in 1,000 sq. ft. 4.010 2.738 RT Restaurants take -out 1,000 sq. ft. 4.010 2.738 RC Banquet facilities /patio seating 1,000 sq. ft. 1.166 0.825 BL Laundromats 1,000 sq. ft. 13.506 14.594 SF Skilled nursing facilities 1,000 sq. ft. 2.216 2.347 FE Residential care facilities for the elder) 1,000 sq. ft. 0.932 0.987 HP Hospitals 1,000 sq. ft. 2.891 3.124 LH Hotels /motels 1,000 sq. ft. 1.166 1.272 CH Churches 1,000 sq. ft. 0.242 0.261 (1) Fees for multi -use buildings shall be determined by considering each use separately. (2) "Unit -of- measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g., dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior dimensions of the structure. Page 8 of 11 SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES -- CONTINUED Residential Unit Equivalence (RUE) Factors(1) Number of RUE = Unit of Measure Count Multiplied by the RUE factor Eligible for Gravity Pumping Capacity Capacity Capacity Use Fee Fee Charge Use Unit of Measure RUE RUE Program Code I User Group 2 Factor Factor * =Yes Private Schools SD, SE, SH, SI, SU Schools w /cafeteria and Classroom 0.860 1.000 gym/showers Schools w /gym /showers Classroom 0.774 0.900 and no cafeteria Schools w /cafeteria and Classroom 0.516 0.600 no gym/showers Schools w/o cafeteria or Classroom 0.430 0.500 gym/showers (1) Fees for multi -use buildings shall be determined by considering each use separately. (2) "Unit -of- measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g., dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior dimensions of the structure. Page 9 of 11 SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES -- CONTINUED Special Studies Type Fee Required by District 3 $0 Initiated by User I Actual Cost, $490 Minimum The following user groups require a special study to determine the capital improvement fee. Use Use Use Code User Group Code User Group Code User Group BP Parking lots IE Electronic industries -- Improvements w/ garbage disposals CM Cemeteries/ IH Heavy industries -- Public facilities mortuaries EP Parks/ IP Permitted industries -- Special billings playgrounds ES Swimming pools IR Laboratories/ - Utilities research facilities EF Large fitness/ athletic clubs LR Residence hotels Values for use in the RUE formula in Section 6.12.050(D)(2) shall be: FLORU = 200 gpd BODRU = 200 mg /I TSSRU = 215 mg /I A = 0.69 B = 0.14 C = 0.17 Page 10 of 11 SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES -- CONTINUED Capacity Use Charge Program The minimum "initial payment" threshold gravity capacity fee RUE factor shall be 1.166 RUE /per 1,000 sq. ft. Capacity Charge Capacity Use "Initial Payment" Charge Rates Gravity Pumping Capacity Fee Capacity Fee Current Year RUE Factor RUE Factor ($ /Month Use (RUE /1,000 (RUE /1,000 1,000 Sq. Annual Code User Group S . Ft. ) S . Ft. ) Ft. $ /HCF AC 1.166 22.829 $710.77$730 $3. 83$3.93 Car washes .12 AW Car washes, with 1.166 3.805 $83- 89$86.1 $2-.71 -$2.78 recycling 8 BL 1.166 14.594 $439:40$451 $0$3.80 Laundromats .37 HP 1.166 3.124 $61. 42$63.1 $x:42$2.48 Hospitals 0 RB Bakeries 1.166 2.178 $188$105 $5- 82$5.98 retail .89 RS Restaurants 1.166 2.738 $401.27$104 $4-55$4.67 dine -in .30 RT Restaurants 1.166 2.738 ^ $104 $4.- 55$4.67 (paper service/ .30 no dishwashers) SF Skilled nursing 1.166 2.347 $37.39$38.4 $4- 92$1.97 facilities 1 The annual interest rate for calculation of capacity use charges shall be established in Section 6.30.010(E -4) of this Code. (Ord. 234 § 1 (Exh. A), 2005: Ord. 227 § 1 (Exh. A), 2003; Ord. 217 §§ 1(Exh A(part)), 2, 2001: Ord. 201 § 1(Exh.(part)), 1997: Ord. 189 § 1(Exh. B), 1993: Ord. 169 § 1(Exh. A(part)), 1989) Page 11 of 11 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 20, 2006 No.: 6.a. BIDS AND AWARDS Type of Action: AWARD A CONSTRUCTION CONTRACT subject: AWARD A CONSTRUCTION CONTRACT TO POSCON ELECTRIC, INC. FOR THE CONSTRUCTION OF THE LOW VOLTAGE POWER CIRCUIT BREAKERS UPGRADE FOR SUBSTATION 40 PROJECT, DISTRICT PROJECT 7235 Submitted By: Initiating Dept✓Div.: Clint T. Shima, Assistant Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: _gT—f — h�r . C. Shima b. Than A. Farrel General ISSUE: On March 29, 2006, sealed bids were received and opened for the Low Voltage Power Circuit Breakers Upgrade for Substation 40 Project, District Project 7235. The Board of Directors must make a determination whether to award the contract to the lowest bidder within 50 days of the bid opening. RECOMMENDATION: Award of a construction contract to the lowest bidder, Poscon Electric, Inc. FINANCIAL IMPACTS: Construction costs are approximately $316,000, including bid price, contingency and construction management. ALTERNATIVES /CONSIDERATIONS: Alternatives include (1) award a construction contract to Poscon Electric, Inc., or (2) reject all bids. Staff does not recommend that the Board reject all bids. BACKGROUND: Most of the electrical switchgear in the treatment plant was installed in the mid- 1970's and is nearly 30 years old. In 2003 and 2004, District staff conducted an inspection and test program to assess the condition of treatment plant switchgear and to prioritize needed improvements. The low voltage (480 volt) General Electric circuit breakers in Electrical Substation 40 were identified as the most problematic and in need of improvement due to their failure to trip under overload or fault conditions. Electrical Substation 40 provides power to the Filter Plant for recycled water and in- plant water use (see Attachment 1 for project location). Design and preparation of project drawings and specifications of this project was a combined effort of District staff and MWH. The engineer's pre -bid estimate for the construction cost was $250,000. The project was advertised on March 6 and 11, 2006. Three (3) bids ranging from $217,500 to $278,900 were received and publicly opened W \PESUMPosition Papers \Shima \7235 - Award - Final.doc Page 1 of 5 POSITION PAPER Board Meeting Date: April 20, 2006 subject. AWARD A CONSTRUCTION CONTRACT TO POSCON ELECTRIC, INC. FOR THE CONSTRUCTION OF THE LOW VOLTAGE POWER CIRCUIT BREAKERS UPGRADE FOR SUBSTATION 40 PROJECT, DISTRICT PROJECT 7235 on March 29, 2006. A summary of these bids is shown on Attachment 2. The apparent low bid is from Poscon Electric, Inc. in the amount of $217,500. The Capital Projects Division conducted a technical and commercial evaluation of these bids and has determined that Poscon Electric, Inc. is the lowest responsive and responsible bidder with a bid amount of $217,500. District staff will perform construction management, inspection, and construction contract administration. MWH has performed satisfactorily during the design phase of this project, and staff recommends retaining MWH to provide support services during construction of this project. The construction support services include reviewing shop drawings and submittals, responding to design questions, evaluating change order requests, and performing site visits to verify compliance with the design intent. Staff has negotiated a professional engineering service agreement with MWH with a cost ceiling of $15,000. This brings the total contract cost with MWH to $35,000. The additional allocation of funds required to complete this project, as shown in Attachment 3, is $206,000. The Low Voltage Power Circuit Breakers Upgrade for Substation 40 Project is included in the 2005 -2006 Capital Improvement Budget on pages TP -86 through TP -87. Staff has determined that there are adequate funds in the Capital Improvement Budget and Plan for this project. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15301, since it involves repairs to an existing public facility. Approval of this award establishes the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: Staff recommends that the Board award a construction contract in the amount of $217,500 for construction of the Low Voltage Power Circuit Breakers Upgrade for Substation 40 Project, District Project 7235, to Poscon Electric, Inc., the lowest responsive and responsible bidder. N:\PESUP \Position Papers \Shima \7235 - Award - Final.doc Page 2 of 5 In In s a Y g N N C u o r N i 0 150 300 FEEr 0 IN a n IL�JI IN 1 PROJECT fi SITE O ----\� lop \ Pfaee C I Fi v V& Noe Qo RON / O Jodi o / / J �N mil 4 �I ,l Central contra costa LOW VOLTAGE POWER CIRCUIT BREAKERS Sanitary District !UPGRADE FOR SUBSTATION 40 ' District Project 7235 Project Location Attachment 1 Page 3 of 5 ATTACHMENT 2 LOW VOLTAGE POWER CIRCUIT BREAKERS UPGRADE FOR SUBSTATION 40 PROJECT DISTRICT PROJECT NO. 7235 SUMMARY OF BIDS PROJECT NO.: 7235 DATE: March 29, 2006 PROJECT NAME: Low Voltage Power Circuit Breakers Upgrade for Substation 40 Project LOCATION: Martinez, California ENGINEER EST.: $250,000 No BIDDER BID PRICE Name & address 1 Poscon Electric, Inc. 900 Loveridge Road $217,500 Pittsburg, CA 94565 2 Contra Costa Electric, Inc. 825 Howe Road $266,443 Martinez, CA 94553 3 Rosendin Electric, Inc. 880 Maybury Road $278,900 San Jose, CA 95133 BIDS OPENED BY /s/ Jim Warrington DATE March 29, 2006 Page 4 of 5 ATTACHMENT 3 LOW VOLTAGE POWER CIRCUIT BREAKERS UPGRADE FOR SUBSTATION 40 PROJECT DISTRICT PROJECT NO. 7235 POST - BID / PRE - CONSTRUCTION ESTIMATE No. Item Description Amount 1 CONSTRUCTION a. Construction Contract $217,500 b. Contingency at 20% $43,500 TOTAL CONSTRUCTION $261,000 2 CONSTRUCTION MANAGEMENT a. District Forces - Construction Management and Inspection $40,000 SUBTOTAL $40,000 b. Consultant - MWH $15,000 SUBTOTAL $15,000 TOTAL CONSTRUCTION MANAGEMENT $55,000 3 TOTAL CONSTRUCTION PHASE COST $316,000 4 TOTAL PREBID EXPENDITURES $40,000 5 TOTAL DESIGN AND CONSTRUCTION MANAGEMENT COST $95,000 6 TOTAL ESTIMATED PROJECT COST $356,000 7 FUNDS AUTHORIZED TO DATE $150,000 8 ADDITIONAL ALLOCATION NEEDED TO COMPLETE PROJECT $206,000 % of Estimated Construction 100% 15% 6% 21% 121% 15% 36% 136% Page 5 of 5 �z CD C_ ^A SW G 0 mm U .cn co 0 0 N 0 N �L Q U) 4) Lc) Sa 40 cn c 0 m 0 U Cn E 2 Q � L �L � C: 0 � U O � D. a� U CD C_ ^A SW G 0 mm U .cn co 0 0 N 0 N �L Q a O m y' Cl) CO '� v U) •- O '3 U� to � O U E Lm ca �— U� O CL co L cu CL A O O N ' ^w L lr- L N N U N wi ILI L cu O m O 4� U 4� 7" O cu O co 2 WN O Q N O O U 2 CO O O N CO N 2� cu C cu IS* Nunn= .cu U cu !.L co O m O O U O A a O cn O t U O Me cu 0 r p cn •- O c .� O V j cn 4-1 -� .v ._ o •- cr N 4- CL Cf) _ c � CU c "� DoE v � — Q to"_ � M � O "� j 0 V O cn E -� V O o C co CD c: E 0 c 0 E C: E i E� ._ O U� cn (� 0 V ca O M CD a) 0 a V O cn 0 U cn c -W 0 UMER SU) U) ■ � IMEMEN m CL C i Q � r. � � iz r V - C m V LM M V cn V W� W 0 �N + cn �Q � � 0 O w oc r` oc V Q Q N N m Q cs Li co 0 Q Q Q m LO u cn E MElow 0 >1 U) MUNNO E �, . _ V t� -+-a cn Q ._ - ca -W tc� Q CCCS C: c UZ a O OMENS ANN (1) m MINES 0 CO N ■ ENEM O 'V C) 4) m 2 Lon O 4) V 0 ME .i Lom CD � DC a� v � O a O m m c O C. Al O �-+ O cu 4- V L- 00 Cf) CU Q C. O cu � cu C6 0) c c = c.) � .— a) U L.0 c O O O "0 CU 0- C - to �C� O Cu C/) w � — Jc .cn U) .0 .- Ct3 .� �Ota �2E — cu cu cu cn cn cn w w w 0J m WE r U) tai to U) .� 013 V� L 0 E V 0 L V � O C. — CD E OR O a CL Q .J O LO t1s O CO 0 M O N m L O O Cc O O w O O M W O V w M � � L i LM O O O C5 C5 �• O O t� O LO N N c-co- O EL Q cc � O (=5 O CD � O O O M c � 0 0 cn cn 0 0 co U) L FE ,I-pi L I�l s m m W L O LL 0 CL AW CD C J N H .D O co W O O � N C cu O co O O O N Cfl O co 'm cn Q O U O O O E O O O =3 ; L O ; O C cn m �� CU cn C E C 0 � N cn N N O cu v� o c v, O c C Q tai > W cn E 2 CD C i •L In C C N ~ � > V N O cn •— N i- tQ •� (,� N N X U (� O cr i i 2 N X m J W E--• F- Q. (n N L Z Fpj O-E .L 0 uJ L O u. W CL 4) AW U) O C J O E H to O O N V-: co N O cn O U o0 E O co -X cu N N cu N C N cu O N E O 32 0) O cn O > Q > O :3 cn cl . c O C 'O a (n N O p 4- CD a) N O N 70 0 L c O' ca � vOi O L- E _ CD _ C cu Qm i 4-, C Q O 4- O a) O co O N = CU O > �> UC O C N U 0 5 U.� L s ca I- 6.4 pi �L. W L O u. CL U) O J O E to O LN O � � - E o Z O N w � � a) 0 co O U ° ° o o LO E O E t 'x ca E co cn CD > O O C: V cn O N +-0 _N cu N E— O .(D c E 0 E O W .c cu E L CU CU C C Sn cn > Q � CU co IL .� E W C co E2 _O cu L cm cu c cu E CD E a c 3 a� a� L Q� L 0 L cu CD cu N cn cn O 0 .O .�-.j _m C U 0 E cn Q� PJ ,ow 1 .2 Lm AMR ■ m ■ 0 ♦+ r 0 E V 0 L CD V y 0 a a 0 0 4-a �r kP 2 N C N O U N 0 0 W E 0 E L W cn 0 0 . 0 0 E L� -4-a cn cn i y= LM m WE m U) m O Al m Lm lE rig u c O M. ■ E 0 .L- a� O a cl-' cn _0 -6 -0 ^cn W X n Item No. 7.a.2 1 ton System 2 I 0 RIP 1 w inda Station nt Plant ,! 0 4500 4000 3500 3000 2500 2/1 TOTAL PLANT POWER 2/11 2121 313 3/13 323 412 4/12 5 r J FGa.- 'x,m Return to regular view Print This Article CHRONICLEWATCH Working for a better Bay Area DAY 1,000: Martinez approves replacing the bridges at Hidden Lakes - Suzanne Pullen, Chronicle Staff Writer Thursday, April 20, 2006 DAY 1,000 7, q � 3) h) For 1,000 days, ChronicleWatch has reported about stalled repair work to a pair of wooden bridges at Hidden Lakes Open Space in Martinez. It was that long ago that tipster Yvonne Dufala contacted us to say that she was worried that if the rotting structures fell, they could damage the sewer line running underneath. "If the bridges collapse and the sewer line attached to the underside of them breaks, it will be an environmental disaster," said the 61- year -old Martinez resident. Dufala's days of worrying may finally be over. On Wednesday night, the Martinez City Council approved a $447,856 construction contract to replace the bridges and attached pipeline. The Central Contra Costa Sanitary District -- more commonly known as Central San -- which owns the pipeline, has approved its portion of the contract and said work should get under way before summer. "Boy, wouldn't that be nice to see, but I'm not holding my breath," Dufala said. "Things move real slowly here in Martinez." In 1981, Central San installed the elevated sewer line through Hidden Lakes Open Space to serve Diablo Valley Estates, a 200 -home development, off Morello Avenue. In exchange, the city got the sanitary district to build a pair of pedestrian bridges to help mask the sewer line. "We have hundreds of sewer lines that cross over creeks," said Central San spokeswoman Bonnie Lowe. "But we rarely put a bridge over one." The bridges allowed park users to easily access the northern edge of the open space area as well as nearby Hidden Valley Park. But in January 2002, after 20 years of wear and tear, they were deemed structurally unsafe and were closed to foot traffic. And for a year and a half afterward, parkgoers such as tipster Ron Sheppard were forced to cross two city streets to access trails on the other side of the lakes. When we first reported on the bridges in August 2003, city officials told us that because the municipal budget was tight, they were looking for outside funding for the project. Less than a month later, the city installed a temporary walking trail around the lakes while it began a two -year effort to get the money and proper permits. By the fall of 2004, the city secured its half of the estimated $450,000 joint project with Central San and began design plans. "It isn't just a bridge project, it's a sewer project," said city engineer Tim Tucker. "We have known from the outset that it would be awhile before we could work out an agreement with Central San. Whenever there is more than one agency involved, it adds to the complexity of the project." Sheppard spent a rare sunny afternoon at the 26 -acre open space park last weekend and doesn't understand why it is taking so long to get the bridge - replacement project started. "It's not like they are driving semis across them," he said. He has been enjoying the park's trails for 20 years. "The area is just too beautiful not to have the bridges open," he said. Dufala said she doesn't care about using the bridges. She prefers the temporary trail but wants the work to start soon so the otters, western pond turtles, hawks and foxes she sees at the open space aren't injured if the structure collapses. "The bridges are really rotting away, and kids have been breaking pieces off of them," Dufala said. "If it falls, it would ruin the lakes and hurt the wildlife." The city's senior civil engineer, Joe Enke, told us the project -- which is being financed in part by the Transportation Fund for Clean Air, Transportation Development Act funds for pedestrian and bike improvements, and park dedication fees -- should start this spring and be completed by October. Who's responsible: Tim Tucker, Martinez city engineer; (925) 372 -3562; tucker@ciiyofmartinez.org Page B - 1 URL: http: / /sfgate.com /cgi- bin /article.cgi? file= /c /a/2006 /04 /20/BAGRIIC3NAI.DTL ©2006 San Francisco Chronicle Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: APRIL 20, 2006 No.: g.a. ENGINEERING Type of Action: AUTHORIZE CONSULTANT SERVICES AGREEMENT REVISION Subject: APPROVE INCREASE IN COST CEILING OF PROFESSIONAL ENGINEERING CONSULTING SERVICES AGREEMENT WITH TALAVERA AND RICHARDSON FOR INTERPRETATION AND INTEGRATION OF FLOW MONITORING DATA INTO THE DISTRICT HYDRAULIC SEWER MODEL, DP 5930 Submitted By: Initiating Dept /Div.: Gail Chesler, PhD, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION. C 6-",1W V� N�/ (Q— G. Chesler R. Schmidt C. Swanson A. Fa rell OharI General ISSUE: Board approval is required for increases to the cost ceiling of agreements in amounts greater than staff authority. RECOMMENDATION: Authorize the General Manager to execute an amendment to the existing agreement (Agreement No. 029702) with Talavera and Richardson (T &R) to increase the cost ceiling by $50,000 to a total of $120,000 for integration of flow monitoring data into the District hydraulic model, DP 5930. FINANCIAL IMPACTS: The original $310,000 budget for consultant services for this project included $240,000 for placement of flow meters by another consultant, E2, and $70,000 for analysis by T &R. The E2 flow meter placement budget was under spent by $80,000 but additional analysis is needed by T &R. Increasing the T &R analysis budget by $50,000 will bring the total project consulting services expenditures to $280,000, which is $30,000 less than the original budget. ALTERNATIVES /CONSIDERATIONS: An alternative would be to not complete this work. This is not recommended. A considerable investment has been made in gathering this flow monitoring data. Incorporation of this data into the hydraulic model will make sizing of sewers and downstream facilities more accurate. A second alternative would be to hire another firm not familiar with the District model, and the work done to date, to complete this work. This is also not recommended. BACKGROUND: The original scope of this project included flow monitoring analysis and incorporation into the District's sewer hydraulic model. This analysis required reconciling upstream flow monitoring data with flows received at the plant. While plant meters are accurate, during periods of extreme wet weather, we store incoming flow in N: \ENVRSEC \Position Papers \Chesler\ 2006\ ApprovelncreaseT &RAgreement_4- 20- 06.doc Page 1 of 2 POSITION PAPER Board Meeting Date: April 20, 2006 subject. APPROVE INCREASE IN COST CEILING OF PROFESSIONAL ENGINEERING CONSULTING SERVICES AGREEMENT WITH TALAVERA AND RICHARDSON FOR INTERPRETATION AND INTEGRATION OF FLOW MONITORING DATA INTO THE DISTRICT HYDRAULIC SEWER MODEL, DP 5930 the collection system to minimize bypassing flow to the ponds. This practice directly affected our ability to use the plant flow monitoring data to assist with calibration of the model. Arriving at a method to reconcile the upstream flow monitors with the plant influent data resulted in an inability to complete the work for the original estimate. This amendment will allow staff to complete calibration of the District sewer hydraulic model using the new flow monitoring data collected in 2005, so that it more accurately reflects flow conditions in the field. The previous calibration was based on data gathered in the wet weeks of February 1986. The District service area has grown since that time, and pipe deterioration and renovation have resulted in changes in response to rainfall events. More accurate flow projections may allow us to downsize some planned facilities resulting in construction cost savings. Accurate flow projections are also essential to ensuring that facilities are properly sized to avoid wet weather capacity issues. The amendment may also include programming work to allow downloads from the District mapping software to the hydraulic model and from the HTE land use database to the hydraulic model. Staff is still pursuing use of other consultants for this portion of the work, but has not been successful in identifying persons with appropriate skills. Finally, funds are included for some training of staff engineers on the use of the model. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an amendment to the existing agreement (Agreement No. 029702) with Talavera and Richardson (T &R) to increase the cost ceiling by $50,000 to a total of $120,000 for integration of the flow monitoring data into the District hydraulic sewer model, DP 5930. N:\ENVRSEC \Position Papers \Chester\ 2006W pprovelncreaseT &RAgreement_4- 20- 06.doc Page 2 of 2 ti w ti M 06 �L O �' O p O � L m ti DO 4� • �z IT 3� 's • tn w �f ' S3 � s ;r r t N N .b I -6-0 C: 0 cn E OL 0 0 0 co 0 5: 'U. 0 :> it it m 4� ti ct 06 J O c LV O - LL Z F- LU f_ -- Z U O b OW m -- W muw�.ea 3 O � Z LL — 4 E z� y � ,ava, Mai: iU �W Oy m 44 0) iMO 1111,11", `3 00 LO a co -v °o ,r, of C`i af o NJ o roz-.' r N w in •' '' � � a •er per � :� �• t r f � i U r r . i ' �vy•. p Q r C`d to py co ., •.� � Lt C M4 T V N o oa CD %r cv a N ; LL- - 0 ALSO v-� a� .fl v b DO 4� a� ?E - € Imo— o J N —— o Cl) LV IPPWIMq! IPOw)wg1 -= 0 r) �V• LL Ft C.) v r,1 g O O' a Cf) W C WW (PMU�xe V � Z O Z U_ N 4 V d' roses Mqe � ` a e H U a� ?E d � E � � � § c � R \ : 4 R : r R �» & � R : .�. : x = � f 2 $ � � o ° » © §\ ra © » a ;) 22 . E \ \ '0 -m � ± , $ B - f $ 2 t 0{ / k] . L) / / E e - \ \44 w d` : z S : LO Z . z �- : � �x : a E B CD E 9 R m % ° moll paislirpe 12 moll � � § c � 00 4� Ct O C mo U M o � � o c ,o Ca cu Q cz .� co c� ct `t Cid w N Q Q Ol U 00 i cn �C w ti i M 06 T—o cis O a� U � cn Q .� p c� 4- •� s C c 4-j U1 bA ' � 4J � � U m a U U a� a� m C aC w ce W3 0 a� m a 0 a� m oa ti a� ..c a� m t 'Ei !s is 1 y i ). E�i A x 4 I i � EF d: ._..... ........_.......:... 3 �y 1 �4 )� d3 !. n s t 3 j f3 < 3 I 4' 19 s t .... If a� ..c a� m Is DO 0 ct M Ct 0 'M OE 4.% p O y CIO o � 00 -GOS °' o o d ^ N IC4 0 O 00 Cld ct o °o ° M ° o + O� N � .. �Eoq b4 O O '� O O y a� O M v O O O _ � 0 0 O N > M N oq P-, U boo W U b9 6q N N N ^O Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: APRIL 20,2006 No.: 10.a. BUDGET AND FINANCE Type of Action: REVIEW SELF - INSURANCE FUND BUDGET FOR FISCAL YEAR 2006 -07 Subject: REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF - INSURANCE FUND AND APPROVE THE ALLOCATION OF $700,000 TO THE FUND FOR INCLUSION IN THE 2006 -07 OPERATIONS & MAINTENANCE BUDGET Submitted By: Initiating Dept. /Div.: Randall M. Musgraves, Director of Administrative /Safety & Risk Management Administration REVIEWED AND RECOMMENDED FOR BOARD ACTION: u aves K. Alm Charles a General Mana r ISSUE: The Self- Insurance Fund (SIF) is to be reviewed each year by the Board of Directors with staff presenting funding recommendations for the upcoming fiscal year. RECOMMENDATION: Receive the 2006 -07 SIF Budget and authorize the allocation of $700,000 to the fund from the 2006 -07 Operations & Maintenance (O &M) Budget for inclusion in the budget. FINANCIAL IMPACTS: The impact of this action requires the allocation of $700,000 from the 2006 -07 O &M Budget to the SIF. ALTERNATIVES /CONSIDERATIONS: The alternatives to this action are to provide less funds than recommended, to not fund the SIF, decrease the fund balance, or to increase the fund balance by transferring more than $700,000. BACKGROUND: The District has self- insured most of its liability and some of its property risks since July 1, 1986, when the Board approved the establishment of the Self- Insurance Fund. The SIF has effectively funded District losses over its twenty - year history. In 1994, a new Government Accounting Standards Board Statement No. 10 (GASB -10) set forth requirements on how public agencies must fund their self- insured risks. To assure compliance with GASB -10, the District restructured the SIF into three sub - funds. Each of the three (3) sub -funds was established for funding specific risks: Page 1 of 8 POSITION PAPER Board Meeting Date: April 20, 2006 subject REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF - INSURANCE FUND AND APPROVE THE ALLOCATION OF $700,000 TO THE FUND FOR INCLUSION IN THE 2006 -07 OPERATIONS & MAINTENANCE BUDGET SUB -FUND A: GASB -10 actuarially based risks. These include general liability and automobile liability risks. Under the requirements of GASB -10, risks that could be actuarially studied must be funded based on an actuarial study that must be done every two years. General liability and automobile liability are readily studied throughout the insurance and self- insurance industry to determine funding levels for these liabilities. The District obtained an actuarial review of its self- insured general liability and automobile liability in 2005 that projected losses for these risks. The actuary, Advanced Risk Management Techniques (ARM Tech) is recommending the Sub -Fund A reserve for future claims be $881,500 based on insurance industry statistics and the District's actual claims experience. To fund Sub -Fund A at this reserve level a decrease in the Employment and Pollution Liability (Sub -Fund B) reserve will occur. Staff has discussed this situation with the Board in past presentations and has projected increased funding from the O &M Budget, increasing from $250,000 to $900,000 in fiscal year 2011 -12. The O &M Fund provides the funding for the SIF operating costs and reserves. Sub -Fund A was established to insure these risks based on the District having a $10,000,000 excess liability policy with a $500,000 self- insured retention. An actuarial study is required every two years to comply with GASB 10 requirements. The actuarial study was completed by ARM Tech in April 2005. The annual average expense for Sub -fund A over the past three fiscal years has been approximately $215,000, offset by an average revenue of approximately $15,000 for a net draw down of reserves of $200,000 annually. The projected 2005 -2006 revenue is $42,250 and cost is $370,000, reflecting the impact of the current lawsuit for an overflow under a home. This has depleted excess General and Automobile Liability (Sub -Fund A) reserves and has created the need to reduce the Employment and Pollution Liability (Sub -Fund B) reserve in fiscal years 2005 -06 and 2006 -2007. In order to fund the SIF operating expenses and maintain reserves at approximately $880,000 for the General and Automobile and $1,200,000 for the Employment and Pollution Liability Sub - Funds, the O &M Fund contribution must increase to $900,000 by 2011 -12. This assumes annual claims of approximately $150,000. SUB -FUND B: GASB -10 Non - actuarially -based risks. These include employment - related and pollution - related risks. GASB -10 requires that all potential risks be adequately and soundly funded even though these risks are not actuarially reviewed. An actuarial study was not required for these risks Page 2 of 8 POSITION PAPER Board Meeting Date: April 20, 2006 subject REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF - INSURANCE FUND AND APPROVE THE ALLOCATION OF $700,000 TO THE FUND FOR INCLUSION IN THE 2006 -07 OPERATIONS & MAINTENANCE BUDGET since losses for employment - related and pollution - related risks are often predicted with less accuracy because these types of cases occur infrequently but may result in extremely high costs and losses. With guidance from risk management and insurance specialists, the District originally established Sub - Fund B at $2,450,000 to fund employment - related and pollution - related risks based on the purchase of the above mentioned excess liability insurance policy. As previously discussed, the $2,191,296 reserve level projected for 2005 -2006 will be reduced by $99,500 to $2,091,796 in 2006 -07 due to the net transfer to Sub -Fund A reserves to meet the required minimum reserve balance and the increased insurance premiums funded in Sub -Fund C. SUB -FUND C: Non -GASB 10 risks. This Sub -Fund covers risk management program insurance premiums, potential losses from uninsurable risks, and the costs of initiating claims and lawsuits against others who have damaged the District. The District established this Sub -Fund to finance non -GASB 10 risks under our risk management program. Specific costs include: insurance premiums for a $10,000,000 excess liability policy; and insurance premiums for insuring District properties for fire, explosion, water damage, etc. for losses above $250,000. This Sub -Fund has used its reserves to offset the significant increases in premiums for the past five years. Staff is anticipating an approximate increase in general liability insurance premiums of five percent, and a twenty -five percent increase in property insurance premiums, reflecting the property loss impact from hurricane Katrina, for fiscal year 2006 -07. Sub -Fund C reserves will be depleted in 2005 -06, requiring a reduction to Employment and Pollution Liability (Sub -Fund B) reserves. Increased contribution from the O &M Fund will be required to meet the financial obligations of the SIF now and in the future. Exhibits II, III & IV (attached) present the projected Sub -Fund A, Sub -Fund B and Sub - Fund C 2006 -07 budget summary. Exhibit I presents a recent financial history and projection of the SIF and shows the 2006 -07 SIF budget estimated total revenues of $883,500 and total expenses of $983,000, reducing the projected 2006 -07 total SIF reserves by $99,500 to $2,973,297 on June 30, 2007. The budgeted revenues include a recommended allocation of $700,000 from the 2006 -07 O &M budget to the SIF. Page 3 of 8 POSITION PAPER Board Meeting Date: April 20, 2006 subject REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF - INSURANCE FUND AND APPROVE THE ALLOCATION OF $700,000 TO THE FUND FOR INCLUSION IN THE 2006 -07 OPERATIONS & MAINTENANCE BUDGET In summary, the significant increase in insurance premiums to the District over the past five years, and the recent increase in the General and Automobile Liability (Sub -Fund A) reserve, based upon the GASB 10 required actuarial study, has depleted the excess reserve funding in Sub -Fund C and has also reduced the reserve for Employment and Pollution Liability (Sub -Fund B) from the original $2,450,000 to approximately $2,100,000 for 2006 -2007. Furthermore, at the continued current level of revenues and expenses, the Employment and Pollution Liability (Sub -Fund B) is projected to have a reserve balance of $1,200,000 in 2011 -12. The O &M Fund allocation will require an increase from the current $700,000 proposal request to $900,000 in fiscal year 2011 -12 to meet SIF operating expenses and maintain appropriate reserves as reported in the District's Ten Year Financial Plan presented to the Board in January of each year. RECOMMENDED BOARD ACTION: Receive the proposed 2006 -07 Self- Insurance Fund Budget and approve the allocation of $700,000 to the fund for inclusion in the 2006 -07 O &M Budget. Page 4 of 8 Revenues SIF Allocation from O &M Fund Insurance Allocation from HHW Subrogation Recovery Interest Income Total Revenue Expenses Claims Adjusting Insurance Consulting Loss Payments Legal Services Technical Services Insurance Premiums Total Expenses Revenue Over Expense Reserves Beginning of Year Revenue over Expense End of Year Reserves CENTRAL CONTRA COSTA SANITARY DISTRICT SELF - INSURANCE FUND (SIF) July 1, 2000 - June 30, 2007 Actual Actual Actual Actual Actual Projected Budget 2000 -2001 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 175,000 200,000 225,000 225,000 250,000 250,000 700,000 16,916 20,175 25,246 28,625 27,758 32,600 36,000 30,865 84,371 - 50 575 5,000 5,000 292,813 159,625 95,046 61,242 82,028 121,000 142,500 515,594 464,172 345,292 314,917 360,361 408,600 883,500 (417,724) (212,988) (286,715) (374,786) (385,191) (466,400) (99,500) 5,216,601 4,798,877 4,585,889 4,299,174 3,924,388 3,539,197 3,072,797 (417,724) (212,988) (286,715) (374,786) (385,191) (466,400) (99,500) 4,798,877 4,585,889 4,299,174 3,924,388 3,539,197 3,072,797 2,973,297 Uncommitted Reserves 1,000 - - - - - - 2,000 401,638 269,267 157,884 82,122 107,048 155,000 260,000 77,909 42,024 9,321 61,406 69,401 211,000 75,000 235,038 113,891 58,463 62,762 75,860 23,000 115,000 218,734 251,977 406,340 483,413 493,243 486,000 530,000 933,318 677,159 632,007 689,703 745,552 875,000 983,000 (417,724) (212,988) (286,715) (374,786) (385,191) (466,400) (99,500) 5,216,601 4,798,877 4,585,889 4,299,174 3,924,388 3,539,197 3,072,797 (417,724) (212,988) (286,715) (374,786) (385,191) (466,400) (99,500) 4,798,877 4,585,889 4,299,174 3,924,388 3,539,197 3,072,797 2,973,297 Uncommitted Reserves Actuarial Reserves - GASB 10 (Fund A) 1,066,924 379,710 437,360 437,360 881,500 881,500 881,500 Non- Actuarial Reserves - GASB 10 (Fund B) 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,191,296 2,091,796 Non -GASB 10 Reserves (Fund C) 1,281,953 1,756,179 1,411,814 1,037,027 207,696 - Total Reserves 4,798,877 4,585,889 4,299,174 3,924,388 3,539,197 3,072,797 2,973,297 Change in Reserves 417,724) (212,988) (286,715) (374,786) (385,191) (466,400) 99,500 Exhibit I Page 5 of 8 SELF - INSURANCE FUND Actual 2004 -2005, Projected 2005 -06 and Budget 2006 -2007 SUB -FUND A: GASB -10 ACTUARIALLY BASED RISKS GENERAL LIABILITY AND AUTOMOBILE LIABILITY Actual Projected Budget 2004 -2005 2005 -2006 2006 -2007 Actuarial Reserves - GASB 10 - Beginning of Year $ 437,360 $ 881,500 $ 881,500 Revenues: O &M - - - Subrogation Recovery - 5,000 5,000 Interest 11,511 37,250 57,000 Total Revenues 11,511 42,250 62,000 Expenses: Losses 107,048 150,000 250,000 Legal 56,818 200,000 50,000 Technical 75,860 20,000 100,000 Total Expenses 239,726 370,000 400,000 Revenue over Expense (228,215) (327,750) (338,000) Reserves: Transfer (to) /from Sub -Fund B - 327,750 338,000 Transfer (to) /from Sub -Fund C 228,215 - - Transfer (to) /from Sub -Fund C <1> 444,140 - - Total Reserves Projected End of Year $ 881,500 $ 881,500 $ 881,500 <1> Per Actuarial Evaluation Exhibit 11 Page 6 of 8 SELF - INSURANCE FUND Actual 2004 -2005, Projected 2005 -06 and Budget 2006 -2007 SUB -FUND B: GASB -10 NON - ACTUARIALLY BASED RISKS EMPLOYMENT RELATED AND POLLUTION RISKS Actual Projected Budget 2004 -2005 2005 -2006 2006 -2007 Beginning Reserves $ 2,450,000 $ 2,450,000 $ 2,191,296 Revenues: O &M - - - Recovery - - - Interest 64,345 83,750 85,500 Total Revenues 64,345 83,750 85,500 Expenses: Losses - 5,000 10,000 Legal (300) 1,000 5,000 Technical - 1,000 5,000 Total Expenses (300) 7,000 20,000 Revenue over Expense 64,645 76,750 65,500 Reserves: Transfer (to) /from Sub -Fund A - (327,750) (338,000) Transfer (to) /from Sub -Fund C (64,645) (7,704) 173,000 Total Reserves Projected End of Year $ 2,450,000 $ 2,191,296 $ 2,091,796 Exhibit III Page 7 of 8 SELF - INSURANCE FUND Actual 2004 -2005, Projected 2005 -06 and Budget 2006 -2007 SUB -FUND C: NON GASB -10 RISKS RISK MANAGEMENT PROGRAM INSURANCE PREMIUMS AND COSTS OF INITIATING CLAIMS /LAWSUITS AGAINST OTHERS Beginning Reserves Revenues: Actual Projected Budget 2004 -2005 2005 -2006 2006 -2007 $ 1,037,027 $ 207,696 $ - O &M 250,000 250,000 700,000 Subrogation Recovery 575 - - Insurance Recovery from HHW Partners 27,758 32,600 36,000 Interest 6,172 - - Total Revenues 284,505 282,600 736,000 Expenses: Insurance Consulting Services - - 2,000 Claims Adjustment - - 1,000 Losses - - - Legal 12,883 10,000 20,000 Technical - 2,000 10,000 Insurance Premiums 493,243 486,000 530,000 Total Expenses 506,126 498,000 563,000 Revenue over Expense (221,621) (215,400) 173,000 Reserves: Transfer (to) /from Sub -Funds A (228,215) - - Transfer (to) /from Sub -Funds A (444,140) - - Transfer (to) /from Sub -Funds B 64,645 7,704 (173,000) Total Reserves Projected End of Year $ 207,696 $ - $ - Exhibit IV Page 8 of 8 Item # 10.a. LOSSES Average = $150,000 annually One current claim going to court ($280,000) INSURANCE PREMIUMS GENERAL LIABILITY EMPLOYMENT LIABILITY 5% increase in premiums, representing approximately 2 -3% inflation and 2 -3% recovery for hurricane damage. PROPERTY 25% increase in premiums due to hurricane season damage. INSURANCE INDUSTRY TREND f+ September,, 2001 Terrorist act on the New York Towers. The industry was under funded plus had to financially deal with destruction. Property premiums were increased between 60% and 150 %, without impact from 2005 hurricanes. The Insurance industry was planning to add $60 billion in assets for the past two years. Premiums were to level off. August 2005 2005 hurricane season produced an additional $75 billion (Hurricanes Katrina, loss, $45 billion from Hurricane Katrina. Rita, Wilma) Since Hurricane Katrina there has been an influx of new investment capital ($12 billion) into the insurance industry anticipated to offset some of the large increase in premiums. December 31, 2005 Southern California experienced 50% increases in property insurance premiums. ( Cl) O CN Z O ( � M LL d LU � U 3 Qi �_ O ( r (/) N Z r � L � ) J 3 FLU n 1 U) O O O O o .+ �o O °O_°LL LO o Lt? O O O CO LO N Cl) m 10 N Ow M co m 0 O N O O O O O 'D (D O OOOO O a) O O N Lr) w U N O• M N O Ln N ' d °o N N O L°Onr- N(D Lo O t�LO0r) O O r— N O 7 CV Q N 00 M QOO N N O LO O N f- o O COLONO O O 00 7 N L6 N CO Cl) U Cl) N Q °o N N co CC 04 O N ' O N O Ln Lf) Lo 7 C0� L6 N O Cl) U N N QOO N N O Ln n LO N N r O �i(NO� ° O Ov0)v O N N O 00 Ln c QOO N N O O (D U') M CD O O c 00 Ln N O O O N LO O LO r M N LO QCD CD O N a LL x 0 � V� O p o > f6 U V O E c rn �ao0a>i 3 Q U (0 C C `0) w o CO) c � 5 O O v! C> CD CD CD O O O O O O (D U') I- U') N r N O Ln vi O M O) N O M O r O rn °' o °' rn N�M Z z ri N m = d N 4) N N a m f�A Q> 0) °a ' ' O 00 O O �f -OV � O r C6 O Ln co rn co N Sri _NN O co It Lo 'IT O LO CL � X W M M G cNc -Fo co O M o N rn 00 � rn m 00 V LO U) r 00 rn M r r O I- N vi vi N M O :�'� V ^ 00 co co 0) M Ln O M co (o c4 Cl) - co N Ov I-- O 000 � V r N V 6 V O) V7 14 Nw O CO e„) CO M N M O) co co M CO O � LO m LO � O m � <I' O fZ OMO Q) LO m N N N tC 00 �C o mrn 1� rn oc rn 00 O N CV C6 O fl N 00 N LO C� I- LO r Co N N M 0)o M (h � (D fl- co PI LLj co r- O r_ 00 V ^ N O O I N Iq � N oto 0) r- OOo O N LO N CO - N O N O M O O (D r- O O 0) (M ;7 LO O (D r r rOfl:O to 00 Ln O M co 00 It N LO co N M O O 1- 1 co 11 co O O N 00 co M O O M I-- rl O r- q7 4 M LO M N ti et � O O M N rIM O O et 't Ln co O r r� m O r- O r O (6 M U) r O 00 Nr tt N N N r I -t co iz O m 0 1 co lcoll (n m O) O LO CO N 0 Li L0 co � � m N ,It 0co I- I � N O LO I-- N O) O O) 00 1- (D O r 00 r.� CO LO 00 m r O I-T N I- 'IT m v! QLL � o r v m U Q C 7 m .LL CO) En Z z y m = d N 4) N N a m f�A Q> 0) °a X a XO (0 U Q � o L`I cn C U N a� c V > } o > N Q V CL � X W ° H 0) ° d N C O r cNc -Fo c Z.E . SD o C - N (D 0 C 0) N d 'C X wU s J _I I— = ► d w wmlrw oto 0) r- OOo O N LO N CO - N O N O M O O (D r- O O 0) (M ;7 LO O (D r r rOfl:O to 00 Ln O M co 00 It N LO co N M O O 1- 1 co 11 co O O N 00 co M O O M I-- rl O r- q7 4 M LO M N ti et � O O M N rIM O O et 't Ln co O r r� m O r- O r O (6 M U) r O 00 Nr tt N N N r I -t co iz O m 0 1 co lcoll (n m O) O LO CO N 0 Li L0 co � � m N ,It 0co I- I � N O LO I-- N O) O O) 00 1- (D O r 00 r.� CO LO 00 m r O I-T N I- 'IT m QLL � o r v m U Q C 7 m .LL CO) En Z z y U) to y d N 4) N N Or N f�A d = m (1) c •d (0 U Q � o MQzz~ u a L X W C LL d v C V H C d N d v C ea ea m d d CO) 'C C cc 4) N C d CL x W ai 3 C O d O O N ON O O O O O O °FA C C C C C C O O O O O O C C C C C C CO LO M N r 64 Efl 6q 64 Efl Qf sJeIIOQ m Z aD CD m m 0 a c W m m c Q V W W 0 H m 0 c a) m m 0 H L V _ LL d V _ L N _ w m N E .E d L a CD �a L N _ ca _ d E cc a N N O J 4- O O N No O O O O O O � O O O O O O O O O O O CD _O � LO CV) 6 69 69 69 69 sjelloQ d v U1 0 E E a� a N U C c0 7 fA C ■ T C E a cu CL 0 J cc d V C H � d N w C O Gs O � H No 0 0 0 0 o 0 669 0 0 0 0 0 0 0 0 0 0 0 0 00 00 00 00 0 0 0 0 (p In V M N 69 69 FA 6R 69 69 sJelloa L d V U) Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 20, 2006 No.: 10.b. BUDGET AND FINANCE Type of Action: APPROVE EQUIPMENT BUDGET Subject: APPROVE THE 2006 -2007 EQUIPMENT BUDGET FOR INCLUSION IN THE 2006 -2007 DISTRICT BUDGET Submitted By: Debbie Ratcliff, Controller Initiating Dept /Div.: Administrative /Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION. D. Ratcl' � raves General ISSUE: The District's 2006 -2007 Equipment Budget is submitted for approval. RECOMMENDATION: Approve the 2006 -2007 Equipment Budget for inclusion in the 2006 -2007 District Budget to be adopted at the June 15, 2006, Board Meeting. FINANCIAL IMPACTS: The 2006 -2007 Equipment Budget totals $1,153,626, which includes a contingency amount of $60,000. ALTERNATIVES /CONSIDERATIONS: The Board could decide not to approve the Equipment Budget. BACKGROUND: The 2006 -2007 Equipment Budget was submitted for review at a Board Capital Projects Committee Meeting /Board Workshop on March 23, 2006 and is scheduled for approval by the Board on April 20, 2006. The Committee did not suggest any changes to the submitted Equipment Budget. The approved 2006 -2007 Equipment Budget will be scheduled for adoption with the 2006 -2007 Staffing Plan, Operations and Maintenance, Self- Insurance Fund, and Capital Improvement Budgets at the June 15, 2006, Board Meeting. RECOMMENDED BOARD ACTION: Approve the 2006 -2007 Equipment Budget for inclusion in the 2006 -2007 District Budget to be adopted at the June 15, 2006, Board Meeting. N:\ ADMINSUP\ADMIN \POSPAPER\Approve 2006 -2007 Equipment Budget 04- 20- 06.doc Page 1 of 1 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 20, 2006 No.: 10.c. BUDGET AND FINANCE Type of Action: BUDGET & FINANCE subject: ADOPT HEALTH INSURANCE PORTABILITY & ACCOUNTABILITY ACT ( HIPAA) APPENDIX TO THE HEALTH FLEXIBLE SPENDING ARRANGEMENT PLAN (A COMPONENT PLAN OF THE CCCSD SECTION 125 CAFETERIA PLAN) TO COMPLY WITH THE NEW HIPAA SECURITY RULE Submitted By: Debbie Ratcliff, Controller Initiating Dept./Div.: Administrative /Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Rat9WV K. MIKgraves Chke tts, General Ma ger ISSUE: Board approval is required to adopt revisions to the District's Cafeteria Plan Documents. RECOMMENDATION: It is recommended that the Board (1) adopt the revisions to the District's Cafeteria Plan documents (specifically, the Health Flexible Spending Arrangement Plan) to meet the new Health Insurance Portability & Accountability Act ( HIPAA) Security Rule; (2) appoint the District Controller as the Privacy Officer and Security Official. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: If the revisions are not approved by the Board, the District's Cafeteria Plan would be in violation of Federal regulations. BACKGROUND: Per the existing Memoranda of Understanding, the three employee groups receive a fixed amount each month to spend on a variety of benefit options offered in the Cafeteria Plan. This Cafeteria Plan is governed by Section 125 of the Internal Revenue Service Code (IRS). The Plan allows employees the option of spending their monthly benefit allowance on a variety of taxable and non - taxable benefits, which includes health care spending under the Health Flexible Spending Arrangement Plan (a component plan). New Federal regulations were issued with a compliance date of April 20, 2006. The HIPAA Security Rule requires entities that maintain electronic protected health information (PHI) to maintain reasonable and appropriate safeguards to ensure confidentiality of health information and to protect against unauthorized uses or disclosures of protected health information. Examples of PHI are names, telephone numbers, social security numbers, medical records, birth dates and similar information. N :\ADMINSUP\ADMIN \POSPAPER \HIPAA Security Rule 04- 20- 06.doc Page 1 Of 8 POSITION PAPER Board Meeting Date: April 20, 2006 subject ADOPT HEALTH INSURANCE PORTABILITY & ACCOUNTABILITY ACT ( HIPAA) APPENDIX TO THE HEALTH FLEXIBLE SPENDING ARRANGEMENT PLAN (A COMPONENT PLAN OF THE CCCSD SECTION 125 CAFETERIA PLAN) TO COMPLY WITH THE NEW HIPAA SECURITY RULE To comply with the Security Rule, the Health Flexible Spending Arrangement Plan must implement administrative, physical and technical safeguards. Formal policies and procedures must address these safeguards. HIPAA Privacy Policies and Procedures for CCCSD have been written by benefits counsel and a copy is held in the Accounting offices. Also, the IT Administrator in conjunction with Accounting staff reviewed the current procedures and have implemented steps to physically and technically safeguard the PHI. Documentation of these steps are kept in the Accounting office. Finally, under HIPAA, the District is required to appoint a Privacy Officer and Security Official. It is recommended that the Board appoint the District Controller. A HIPAA Appendix for the Health Flexible Spending Arrangement Plan has been drafted by the law firm of Trucker•Huss for Board approval (Attachment 1). Also attached is a Certificate of Amendment for Board Signature (Attachment II). RECOMMENDED BOARD ACTION: It is recommended that the Board (1) adopt the revisions to the District's Cafeteria Plan documents (specifically, the Health Flexible Spending Arrangement Plan) to meet the new HIPAA Security Rule; (2) appoint the District Controller as the Privacy Officer and Security Official. N :\ADMINSUP\ADMIN \POSPAPER \HIPAA Security Rule 04- 20- 06.doc Page 2 Of 8 ATTACHMENT I CENTRAL CONTRA COSTA SANITARY DISTRICT HEALTH FLEXIBLE SPENDING ARRANGEMENT PLAN HIPAA APPENDIX A. Introduction The Central Contra Costa Sanitary District (the "Plan Sponsor ") sponsors the Central Contra Costa Sanitary District Health Flexible Spending Arrangement Plan (the "Plan "). In certain circumstances as described below, the Plan will disclose to the Plan Sponsor Protected Health Information of Plan participants and other persons covered by the Plan (the "Covered Individual "). The Health Insurance Portability and Accountability Act of 1996, and both the privacy and security regulations thereunder found at 45 C.F.R. Parts 160 and 164, as amended from time to time require the Plan to restrict the Plan Sponsor's ability to Use and Disclose Protected Health Information that is received from the Plan and to implement reasonable and appropriate security measures to the ePHI required by the Plan and to implement reasonable and appropriate security measures to the ePHI maintained and used by the Plan. One of the requirements is that the Plan Sponsor will amend the Plan as set forth in 45 C.F.R. § 164.504(f)(2) (for privacy) and 45 C.F.R. §164.314(b)(2) (for security). In accordance with such requirements, this Appendix is hereby incorporated into the Plan effective as of April 20, 2006. 4 B. Applicability of Appendix This Appendix to the Plan (the "Appendix ") applies only to health care components of the Plan. The Plan will not Use or Disclose PHI to the Plan Sponsor in circumstances in which the HIPAA Privacy Rule (as defined below) would prohibit such Uses and Disclosures. The Plan Sponsor will treat ePHI in the manner required by the HIPAA Security Rule (as defined below). C. Definitions 1. Business Associate. The term "Business Associate" has the meaning set forth in 45 C.F.R. § 160.103. 2. Disclose or Disclosure. The term "Disclose" or "Disclosure" means the release or transfer of, provision of access to, or divulging in any other manner individually identifiable health information to persons outside the Plan Sponsor. 3. Electronic Protected Health Information. The term "Electronic Protected Health Information" or "ePHI" will have the meaning set forth in 45 C.F.R. § 160.103. #757541 Page 3 of 8 4. HIPAA Privacy Rule. The term " HIPAA Privacy Rule" means the applicable requirements of the privacy rules of Health Insurance Portability and Accountability Act of 1996 and related regulations, Title 45 Parts 160 and 164 of the Code of Federal Regulations, as amended from time to time. 5. HIPAA Security Rule. The term " HIPAA Security Rule" will mean the standards for Security of Electronic Protected Health Information at 45 C.F.R. part 160 and 164, subparts A and C. 6. Plan Administration Functions. The term "Plan Administration Functions" means administrative functions performed by the Plan Sponsor on behalf of the Plan and excludes functions performed by the Plan Sponsor in connection with any other benefit or benefit plan of the Plan Sponsor. 7. Privacy Official. The term "Privacy Official' means the person who is responsible for the development and implementation of the HIPAA Privacy Rule policies and procedures of the Plan. 8. Protected Health Information. The term "Protected Health Information" or "PHI" will have the meaning set forth in 45 C.F.R. § 160.103. 9. Use. The term "Use" means the sharing, employment, application, utilization, examination, or analysis of individually identifiable health information by the Plan Sponsor or any Business Associate of the Plan. D. HIPAA Privacy Rule Requirements 1. General. The Plan will Disclose PHI to the Plan Sponsor only to enable the Plan Sponsor to carry out Plan Administration Functions described in Section D.2 below, and such Disclosures will be consistent with the requirements of the HIPAA Privacy Rule. The Plan will not Disclose PHI to the Plan Sponsor unless the Disclosures are explained in a Notice of Privacy Practices that is distributed to Covered Individuals. 2. Description of Uses of PHI by the Plan Sponsor. The Plan Sponsor will Use or Disclose PHI solely for Plan Administration Functions which may include, but are not limited to, the design, administration, financial operations, or legal defense of the Plan. The Plan Sponsor will also Use or Disclose PHI in order to make determinations on benefit claims and appeals. The Plan Sponsor will not Use or further Disclose the PHI other than as permitted or required in accordance with this stated purpose or as required by applicable law. 3. Employment Actions. The Plan Sponsor will not Use or Disclose PHI for employment related actions and decisions or in connection with any other benefit or employee benefit plan that is sponsored by the Plan Sponsor, except to the extent that such employee benefit plan is part of an Organized Health Care Arrangement (as defined in 45 C.F.R. § 160.103). 2 #757541 Page 4 of 8 4. Access to the Information. The Plan Sponsor will make PHI available to Covered Individuals for inspection and copying in accordance with 45 C.F.R. § 164.524. 5. Amendment of PHI. The Plan Sponsor will make PHI available to Covered Individuals for amendment and incorporate any amendments to PHI in accordance with 45 C.F.R. § 164.526. 6. Accounting of Disclosures of PHI. The Plan Sponsor will make available the PHI required for the Plan to provide an accounting of Disclosures to Covered Individuals in accordance with 45 C.F.R. § 164.528. 7. Information Available to the Secretary of Health and Human Services. The Plan Sponsor will make its internal practices, books, and records relating to the Use and Disclosure of PHI received from the Plan available to the Secretary of Health and Human Services for purposes of determining the Plan's compliance with the HIPAA Privacy Rule. 8. Return or Destroy PHI. If feasible, the Plan Sponsor will return or destroy all PHI received from the Plan that it maintains in any form and retain no copies of such information when no longer needed for the purpose for which the Disclosure was made, except that, if such return or destruction is not feasible, the Plan Sponsor will limit further Uses and Disclosures to those purposes that make the return or destruction of the information infeasible. 9. Adequate Separation. (a) General. The Plan Sponsor will ensure that there is adequate separation between the Plan and the Plan Sponsor as required by the HIPAA Privacy Rule. (b) Employees with Access to PHI. The following is a description of the employees or classes of employees or other persons under the control of the Plan Sponsor that will be given access to PHI: Controller, Finance Administrator, Accountants, Payroll Technician, Administrative Support Supervisor, Administrative Support. (c) Restriction of Access and Use. The access to and Use by the persons described in Section D.9(b) above will be restricted to the Plan Administration Functions that the Plan Sponsor performs for the Plan. (d) Resolving Issues of Noncompliance. In the event there are any issues of noncompliance by the persons described in Section D.9(b), the Plan Sponsor will take all necessary and appropriate action that is consistent with its disciplinary policy. 10. Certification by the Plan Sponsor. The Plan will not Disclose PHI to the Plan Sponsor unless the Plan Sponsor certifies that the Plan has been amended as required by the HIPAA Privacy Rule. #757541 Page 5 of 8 E. HIPAA Security Rule Requirements The Plan Sponsor will reasonably and appropriately safeguard ePHI that it creates, receives, maintains or transmits on behalf of the Plan, other than ePHI that is summary health information disclosed pursuant to 45 C.F.R. Section 164.504(f)(1)(ii), enrollment or disenrollment information disclosed pursuant to 45 C.F.R. Section 164.504(f)(1)(iii), or information disclosed pursuant to an authorization under 45 C.F.R. Section 164.508 In implementing such safeguards, the Plan Sponsor is required to do the following: 1. Safeguards. The Plan Sponsor will implement administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of the ePHI that it creates, receives, maintains or transmits on behalf of the Plan. 2. Adequate Separation. The Plan Sponsor will ensure that the adequate separation between the Plan and the Plan Sponsor as required by Section 164.504(f)(2)(iii) of the HIPAA Security Rule is supported by reasonable and appropriate security measures. F. Agents. The Plan Sponsor will ensure that any agents (including any subcontractors) to whom it provides (1) PHI received from the Plan agree to the same restrictions and conditions that apply to the Plan Sponsor with respect to the PHI, and (2) ePHI received from the Plan agrees to implement reasonable and appropriate security measures to the ePHI. G. Reporting 1. The Plan Sponsor will report to the Privacy Official any Use or Disclosure of the information that is inconsistent with the purposes set forth in Section D above. 2. The Plan Sponsor will report to the Plan's Privacy Official any security incident (as defined by 45 C.F.R. § 164.304) of which it becomes aware. H. Miscellaneous 1. Rights. This Appendix shall not be construed to establish requirements or obligations beyond those required by the HIPAA Privacy and Security Rules. Any portion of this Appendix that appears to grant any additional rights not required by the HIPAA Privacy and Security Rules shall not be binding upon the Plan Sponsor. 2. Amendment. The Plan Sponsor reserves the right to amend or terminate any and all provisions set forth in this Appendix at any time to the extent permitted under the HIPAA Privacy and Security Rules. 4 #757541 Page 6 of 8 3. Document Retention. If a communication under this Appendix is required by the HIPAA Privacy Rule to be in writing, the Plan Sponsor will maintain such writing, or electronic copy, as documentation. If an action, activity, or designation is required by the HIPAA Privacy Rule to be documented, the Plan Sponsor will maintain a written or electronic record of such action, activity or designation. The Plan Sponsor will retain the required documentation for six years from the date of its creation or the date when it last was in effect, whichever is later. 4. Construction. The terms of this Appendix shall be construed in accordance with the requirements of the HIPAA Privacy and Security Rules and in accordance with any applicable guidance on the HIPAA Privacy and Security Rules issued by the Department of Health and Human Services. AMENDMENT OF THE HEALTH FLEXIBLE SPENDING ARRANGEMENT PLAN As evidence of its amendment of this Health Flexible Spending Arrangement Plan, the Central Contra Costa Sanitary District has caused this instrument to be signed by its officers thereunder duly authorized hereto this day of .2006 A President, Board of Directors (Date) For: THE CENTRAL CONTRA COSTA SANITARY DISTRICT ATTEST: (Sign Name) (Date) (Print Name and Title) (Seal) s #757541 Page 7 of 8 ATTACHMENT II CERTIFICATE OF AMENDMENT The undersigned, as a duly authorized officer of the Central Contra Costa Sanitary District (the "Plan Sponsor'), hereby certifies that the Central Contra Costa Sanitary District Health Flexible Spending Arrangement Plan has been amended in accordance with 45 CFR § 164.504(f)(2) of the regulations implementing the Standards for Privacy of Individually Identifiable Health Information under the Health Insurance Portability and Accountability Act of 1996, as amended ( "HIPAA" ). I further certify that attached hereto is a true copy of the approved amendment. in President, Board of Directors (Date) For: THE CENTRAL CONTRA COSTA SANITARY DISTRICT ATTEST: in (Sign Name) (Date) (Print Name and Title) (Seal) 9999.066 #48997v1 #760321 Page 8 of 8 CENTRAL CONTRA COSTA SANITARY DISTRICT HEALTH FLEXIBLE SPENDING ARRANGEMENT PLAN HIPAA APPENDIX A. Introduction lo. The Central Contra Costa Sanitary District (the "Plan Sponsor") sponsors the Central Contra Costa Sanitary District Health Flexible Spending Arrangement Plan (the "Plan "). In certain circumstances as described below, the Plan will disclose to the Plan Sponsor Protected Health Information of Plan participants and other persons covered by the Plan (the "Covered Individual "). The Health Insurance Portability and Accountability Act of 1996, and both the privacy and security regulations thereunder found at 45 C.F.R. Parts 160 and 164, as amended from time to time require the Plan to restrict the Plan Sponsor's ability to Use and Disclose Protected Health Information that is received from the Plan and to implement reasonable and appropriate security measures to the ePHI required by the Plan and to implement reasonable and appropriate security measures to the ePHI maintained and used by the Plan. One of the requirements is that the Plan Sponsor will amend the Plan as set forth in 45 C.F.R. § 164.504(f)(2) (for privacy) and 45 C.F.R. §164.314(b)(2) (for security). In accordance with such requirements, this Appendix is hereby incorporated into the Plan effective as of April 20, 2006. B. Applicability of Appendix This Appendix to the Plan (the "Appendix ") applies only to health care components of the Plan. The Plan will not Use or Disclose PHI to the Plan Sponsor in circumstances in which the HIPAA Privacy Rule (as defined below) would prohibit such Uses and Disclosures. The Plan Sponsor will treat ePHI in the manner required by the HIPAA Security Rule (as defined below). C. Definitions 1. Business Associate. The term "Business Associate" has the meaning set forth in 45 C.F.R. § 160.103. 2. Disclose or Disclosure. The term "Disclose" or "Disclosure" means the release or transfer of, provision of access to, or divulging in any other manner individually identifiable health information to persons outside the Plan Sponsor. 3. Electronic Protected Health Information. The term "Electronic Protected Health Information" or "ePHI ",will have the meaning set forth in 45 C.F.R. § 160.103. 1 0757541 4. HIPAA Privacy Rule. The term " HIPAA Privacy Rule" means the applicable requirements of the privacy rules of Health Insurance Portability and Accountability Act of 1996 and related regulations, Title 45 Parts 160 and 164 of the Code of Federal Regulations, as amended from time to time. 5. HIPAA Security Rule. The term " HIPAA Security Rule" will mean the standards for Security of Electronic Protected Health Information at 45 C.F.R. part 160 and 164, subparts A and C. 6. Plan Administration Functions. The term "Plan Administration Functions" means administrative functions performed by the Plan Sponsor on behalf of the Plan and excludes functions performed by the Plan Sponsor in connection with any other benefit or benefit plan of the Plan Sponsor. 7. Privacy Official. The term "Privacy Official' means the person who is responsible for the development and implementation of the HIPAA Privacy Rule policies and procedures of the Plan. 8. Protected Health Information. The term "Protected Health Information" or "PHI" will have the meaning set forth in 45 C.F.R. § 160.103. 9. Use. The term "Use" means the sharing, employment, application, utilization, examination, or analysis of individually identifiable health information by the Plan Sponsor or any Business Associate of the Plan. D. HIPAA Privacy Rule Requirements 1. General. The Plan will Disclose PHI to the Plan Sponsor only to enable the Plan Sponsor to carry out Plan Administration Functions described in Section D.2 below, and such Disclosures will be consistent with the requirements of the HIPAA Privacy Rule. The Plan will not Disclose PHI to the Plan Sponsor unless the Disclosures are explained in a Notice of Privacy Practices that is distributed to Covered Individuals. 2. Description of Uses of PHI by the Plan Sponsor. The Plan Sponsor will Use or Disclose PHI solely for Plan Administration Functions which may include, but are not limited to, the design, administration, financial operations, or legal defense of the Plan. The Plan Sponsor will also Use or Disclose PHI in order to make determinations on benefit claims and appeals. The Plan Sponsor will not Use or further Disclose the PHI other than as permitted or required in accordance with this stated purpose or as required by applicable law. 3. Employment Actions. The Plan Sponsor will not Use or Disclose PHI for employment related actions and decisions or in connection with any other benefit or employee benefit plan that is sponsored by the Plan Sponsor, except to the extent that such employee benefit plan is part of an Organized Health Care Arrangement (as defined in 45 C.F.R. § 160.103). 2 #757541 4. Access to the Information. The Plan Sponsor will make PHI available to Covered Individuals for inspection and copying in accordance with 45 C.F.R. § 164.524. 5. Amendment of PHI. The Plan Sponsor will make PHI available to Covered Individuals for amendment and incorporate any amendments to PHI in accordance with 45 C.F.R. § 164.526. 6. Accounting of Disclosures of PHI. The Plan Sponsor will make available the PHI required for the Plan to provide an accounting of Disclosures to Covered Individuals in accordance with 45 C.F.R. § 164.528. 7. Information Available to the Secretary of Health and Human Services. The Plan Sponsor will make its internal practices, books, and records relating to the Use and Disclosure of PHI received from the Plan available to the Secretary of Health and Human Services for purposes of determining the Plan's compliance with the HIPAA Privacy Rule. 8. Return or Destroy PHI. If feasible, the Plan Sponsor will return or destroy all PHI received from the Plan that it maintains in any form and retain no copies of such information when no longer needed for the purpose for which the Disclosure was made, except that, if such return or destruction is not feasible, the Plan Sponsor will limit further Uses and Disclosures to those purposes that make the return or destruction of the information infeasible. 9. Adequate Separation. (a) General. The Plan Sponsor will ensure that there is adequate separation between the Plan and the Plan Sponsor as required by the HIPAA Privacy Rule. (b) Employees with Access to PHI. The following is a description of the employees or classes of employees or other persons under the control of the Plan Sponsor that will be given access to PHI: Controller, Finance Administrator, Accountants, Payroll Technician, Administrative Support Supervisor, Administrative Support. (c) Restriction of Access and Use. The access to and Use by the persons described in Section D.9(b) above will be restricted to the Plan Administration Functions that the Plan Sponsor performs for the Plan. (d) Resolving Issues of Noncompliance. In the event there are any issues of noncompliance by the persons described in Section D.9(b), the Plan Sponsor will take all necessary and appropriate action that is consistent with its disciplinary policy. 10. Certification by the Plan Sponsor. The Plan will not Disclose PHI to the Plan Sponsor unless the Plan Sponsor certifies that the Plan has been amended as required by the HIPAA Privacy Rule. 3 #757541 E. HIPAA Security Rule Requirements The Plan Sponsor will reasonably and appropriately safeguard ePHI that it creates, receives, maintains or transmits on behalf of the Plan, other than ePHI that is summary health information disclosed pursuant to 45 C.F.R. Section 164.504(f)(1)(ii), enrollment or disenrollment information disclosed pursuant to 45 C.F.R. Section 164.504(f)(1)(iii), or information disclosed pursuant to an authorization under 45 C.F.R. Section 164.508 In implementing such safeguards, the Plan Sponsor is required to do the following: 1. Safeguards. The Plan Sponsor will implement administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of the ePHI that it creates, receives, maintains or transmits on behalf of the Plan. 2. Adequate Separation. The Plan Sponsor will ensure that the adequate separation between the Plan and the Plan Sponsor as required by Section 164.504(f)(2)(iii) of the HIPAA Security Rule is supported by reasonable and appropriate security measures. F. Agents. The Plan Sponsor will ensure that any agents (including any subcontractors) to whom it provides (1) PHI received from the Plan agree to the same restrictions and conditions that apply to the Plan Sponsor with respect to the PHI, and (2) ePHI received from the Plan agrees to implement reasonable and appropriate security measures to the ePHI. G. Reporting 1. The Plan Sponsor will report to the Privacy Official any Use or Disclosure of the information that is inconsistent with the purposes set forth in Section D above. 2. The Plan Sponsor will report to the Plan's Privacy Official any security incident (as defined by 45 C.F.R. § 164.304) of which it becomes aware. H. Miscellaneous 1. Rights. This Appendix shall not be construed to establish requirements or obligations beyond those required by the HIPAA Privacy and Security Rules. Any portion of this Appendix that appears to grant any additional rights not required by the HIPAA Privacy and Security Rules shall not be binding upon the Plan Sponsor. 2. Amendment. The Plan Sponsor reserves the right to amend or terminate any and all provisions set forth in this Appendix at any time to the extent permitted under the HIPAA Privacy and Security Rules. 4 #757541 3. Document Retention. If a communication under this Appendix is required by the HIPAA Privacy Rule to be in writing; the Plan Sponsor will maintain such writing, or electronic copy, as documentation. If an action, activity, or designation is required by the HIPAA Privacy Rule to be documented, the Plan Sponsor will maintain a written or electronic record of such action, activity or designation. The Plan Sponsor will retain the required documentation for six years from the date of its creation or the date when it last was in effect, whichever is later. 4. Construction. The terms of this Appendix shall be construed in accordance with the requirements of the HIPAA Privacy and Security Rules and in accordance with any applicable guidance on the HIPAA Privacy and Security Rules issued by the Department of Health and Human Services. AMENDMENT OF THE HEALTH FLEXIBLE SPENDING ARRANGEMENT PLAN As evidence of its amendment of this Health Flexible Spending Arrangement Plan, the Central Contra Costa Sanitary District has caused this instrument to be signed by its officers thereunder duly authorized hereto this 20th day of April ,2006 , /C" / , President, Board of Directors (Date) For: THE CENTRAL CONTRA COSTA SANITARY DISTRICT ATTEST: By: 2 < 6 (Sign Name) (Date) Elaine R. Boehme Secretary of the District (Print Name and Title) (Seal) 5 #757541 CERTIFICATE OF AMENDMENT The undersigned, as a duly authorized officer of the Central Contra Costa Sanitary District (the "Plan Sponsor"), hereby certifies that the Central Contra Costa Sanitary District Health Flexible Spending Arrangement Plan has been amended in accordance with 45 CFR § 164.504(f)(2) of the regulations implementing the Standards for Privacy of Individually Identifiable Health Information under the Health Insurance Portability and Accountability Act of 1996, as amended ( "HIPAA "). I further certify that attached heret is a true copy of the approved amendment. By: t 4-/20 10L Board of Directors (bat For: THE CENTRAL CONTRA COSTA SANITARY DISTRICT ATTEST: By: E�.._e_ /2--j5-/6Z Elaine R. Boehme Date Secretary of the District (Seal) 9999.066 #48997vI #760321